Travel

ESG

Frangipani Langkawi Accelerates Path to Sustainability, Sets Target to 2030

KUALA LUMPUR: The tourism and hospitality sector is strongly emerging as a pivotal player in shaping a more environmentally conscious future as the world increasingly prioritises sustainability in all aspects of businesses. However, key industry stakeholders face challenges that demand strategic attention and action to effectively contribute to the United Nations (UN) Sustainable Development Goals (SDGs). While many prominent players in the tourism and hospitality sector openly declare their dedication to corporate sustainability, the prevailing understanding within the industry prioritises business goals, streamlined operations, and saving money rather than genuine sustainability concerns. One local hospitality player has been moving strongly towards achieving sustainability in its businesses and operations. The Frangipani Langkawi Resort And Spa group managing director Anthony Wong said the resort achieved accolades from two UN bodies, the United Nations Development Programme (UNDP) and the UN Sustainable Development Solutions Network (SDSN), in 2022, declaring it the centre of excellence (CoE) in sustainable hospitality. “Our book, which is 270 pages long, offers over 200 ways to practice sustainability. We envision achieving carbon neutrality by 2030 instead of 2050 and showing others how to accomplish this. “From the start of our resort operations, we have considered sustainability, and when the UN introduced the concept of sustainability, we used it as a benchmark. “Over the past 18 years, we have dedicated ourselves to this endeavour, successfully attaining all 17 SDGs. Our team, comprising three full-time members solely dedicated to environmental, social, and governance (ESG) initiatives within the resort and two external team members, receives unwavering support from all department heads in our pursuit of sustainable goals. “We have full-time officers recording our water, energy, food and green practices, and documentation is compulsory where we produce academic papers to teach local higher learning institutes on sustainability practices,” Wong told The Exchange Asia. The resort is allocating approximately RM5 million to enhance its facilities, particularly water and food security. Additionally, more investments will be made in energy-saving equipment such as solar panels, wind turbines, and electric vehicles (EVs). Furthermore, there are also plans to increase tree planting to serve as carbon sinks. Note that the current best practices in sustainable hospitality involve the hospitality industry’s better waste management and reduction. This means hotels must take initiatives to use less plastic and disposable items, waste less food, and explore innovative recycling solutions. Secondly, water conservation, whereby water-efficient fixtures, rainwater harvesting systems, and greywater recycling technologies are adopted to reduce water consumption without compromising guest comfort. Finally, sustainable sourcing, local partnerships, and how leading hotels should prioritise procuring goods and services that meet ethical and environmental standards, including organic and locally produced items. Hotels can reduce their carbon footprint by fostering local partnerships and supporting nearby businesses and communities. When asked to elaborate on various sustainability initiatives, Wong said the resort is currently upgrading every room to have a larger internal garden with the edible landscape around the villas, watering from grey water and more rainwater harvesting, and underground tanks and most villas have rainwater harvesting tanks. “We are producing more organic food and creating more education programmes focusing on the environment and sustainability, especially for children. We are also planting more flowers and making our landscape more colourful. “Our resort boasts 115 villas along a spacious 350-meter beachfront, set within an expansive 11.3-acre estate. “We prioritise family education and provide healthy dining options. Unlike targeting the mass market, we cater to a more intimate experience,” Wong said. When asked how the leadership philosophy influences the resort’s management, Wong said leadership is needed as sustainable concepts are still new in Malaysia. “We train everyone on why and how. We recognise internal green champions. We have the training, documents, and videos to learn, and most importantly, I am teaching staff myself on the ground. “Our main challenge is recruiting skilled staff who can grasp the principles of sustainable hospitality and possess a warm, friendly attitude. “We are open to offering higher wages to incentivise productivity. Therefore, the ability to multitask is essential for survival and success in our industry,” Wong pointed out. “My journey in greening and sustainability started nearly 50 years ago, and I pioneered ecotourism in the Asia Pacific. “We are now partnering with the UN to spread our sustainable green practices and discoveries so more countries can learn from our work globally. The best way for capacity building. “Our goal to be a sustainable green hotel school is almost there. We can show over 200 ways to save involving architecture, bioengineering, chemistry, natural science, biology and continuous research,” Wong said.

The Executives

Europe, China Tourists to Drive Malaysian Heritage Hospitality Occupancy Growth

KUALA LUMPUR: Heritage hospitality in Malaysia, particularly those connected to the hospitality industry, continue to gain recognition among tourists for their unique ability to offer an authentic glimpse into the country’s cultural history. These architectural treasures connect young and old visitors to Malaysia’s rich and diverse traditions. Domestic and international tourists are increasingly searching for the charm of those background buildings that awaken nostalgia and curiosity and showcase Malaysia’s past. From Malay kampung houses to colonial-era mansions, these are indispensable to Malaysia’s tourism attraction, drawing visitors eager to explore the country’s cultural soul. Temple Tree Resort Langkawi resort manager Irene Vairo said that in the next two to three years, European and Chinese tourists will drive the international market occupancy growth for heritage hotels and resorts. “We continuously see foreign tourists visiting Malaysia for a different and unique experience. “These international tourists find Malaysian heritage and culture interesting, and they want to experience that heritage feeling,” she told The Exchange Asia. Temple Tree Resort Langkawi is one of the notable heritage resorts in Malaysia and has gained popularity among travellers seeking cultural and heritage experiences. Situated within a century-old coconut tree plantation, the resort offers 21 rooms and suites in eight heritage buildings. Temple Tree Resort Langkawi offers accommodation in eight houses, namely Straits, Johor, Colonial, Estate, and Plantation, with heritage houses from Penang, Ipoh, and Negeri Sembilan. The resort’s designers carefully relocated these heritage buildings from different parts of Malaysia. Each building is aged between 80 and 120 and showcases various architectural styles. Despite their age, the buildings provide modern amenities such as plush bedding, air conditioning, wifi, and digital entertainment, offering guests the choice to choose from a range of rooms and suites, each with its own unique character. Irene said the resort’s commitment to preserving history sets Temple Tree Resort Langkawi apart from other heritage hospitality establishments in Malaysia. “Our international travellers are predominantly from the United Kingdom, Australia, Holland, France, and China “Weddings are another fast-growing segment, particularly mixed marriages, where couples come from different countries and select an island wedding in Langkawi,” Irene said. A report from IMARC Group highlights that the growth of the heritage hospitality market is driven by the rise of heritage tour operators specialising in creating tailored travel experiences, which is also seen in Malaysia. These operators design trips that appeal to those interested in thoroughly examining cultural and historical landmarks. The report noted that by providing meticulously planned itineraries and distinctive perspectives, they draw in a specific group of clients, including history buffs, cultural scholars, and inquisitive tourists. Further, the report also said that the growing impact of social media and travel influencers is also boosting the heritage hospitality market. With their large followings and engaged audiences, travel influencers highlight their visits to heritage sites, crafting engaging stories that resonate with their followers. The report noted that as social media and influencer marketing continue to develop, their influence on heritage tourism is anticipated to increase, affecting travel choices and moulding how people experience and value cultural heritage. When asked about challenges in maintaining and operating a heritage hospitality establishment, Irene said maintenance costs are the biggest challenge in running the business. “Like any other property, whether old or new, maintenance and repair are an ongoing process, and when operating a heritage resort, even more maintenance and repair are needed to preserve each house’s historical authenticity. “We have daily, weekly, monthly maintenance operations, including landscape works, that must be preserved and maintained to keep the establishment well and appealing, and this has become costlier than before due to the increase in raw material prices and labour costs,” Irene pointed out. Irene said having a good and reliable renovation team that understands heritage and is passionate about this area is important. “This speciality skill is a niche and is not widely available. We do not see this as a challenge but rather a commitment to preserve these historic houses, promote sustainability, and promote Malaysian culture and history for many years,” she said. Irene said Malaysia has a great advantage compared to some of the regional players where English is spoken widely, and conversing with guests from all over the world is easy. “Our pricing factor is also a lot more affordable when compared to Bali for instance. “Accessibility has improved with an international airport here on the island, and a plus point is that guests can get to the island by land, air or sea. “This accessibility will benefit domestic and foreign tourists looking at a unique cultural experience from heritage hospitality providers like Temple Tree Resort Langkawi,” Irene said.

News

Tony Fernandes Signs 5-year Extension as Capital A CEO

KUALA LUMPUR: Capital A Bhd, chief executive officer (CEO) Tony Fernandes has signed a new service contract for the next five years, continuing his role to focus on driving the group’s future growth and financial returns. Capital A independent non-executive director Datuk Fam Lee Ee said the board has approved an incentive package, designed to align the CEO’s interests with shareholders and ensure a shared commitment to drive the long-term success and sustainability of the group. “His role encompasses steering Capital A towards unlocking enhanced shareholder value through the execution of profitable transactions across the group’s entities within Capital A,” he said at a media briefing today. He noted that the incentive package and its details will be presented to shareholders for their approval at the upcoming extraordinary general meeting. “Fernandes has shown an unparalleled ability to successfully transform Capital A to drive growth and deliver financial returns, earning him a reputation as one of the world’s outstanding CEOs,” he said. Fam said Fernandes has set Capital A on the right strategic path for ongoing value creation, and the board determined it is in the best interest of the shareholders to extend his tenure. “We are confident that, under his guidance, we will achieve even greater milestones in the years ahead,” he said. Meanwhile, Fernandes said he envisions Teleport, MOVE Digital, Capital A Aviation Services Group (CAPAS) and Capital A International evolving into separately listed public companies over the next five years. “They will share the fundamental AirAsia DNA, characterised by low-cost, high efficiency and a relentless commitment to being independent and resilient market disruptors,” he said. He will also focus on returning value to shareholders during his renewed term, while creating a narrow-term strategy for the group, coming out from PN17 status and strengthening its balance sheet. Besides the tenure renewal, Tony was also appointed advisor and steward for AirAsia Aviation Group CEO as the airline group embarks on a new era of transformation and growth. AirAsia Aviation Group chairman Tan Sri Jamaludin Ibrahim said Fernandes will provide strategic oversight over AirAsia Aviation Group, including expansion and succession planning and be the key conduit between Capital A and the aviation business ecosystem to ensure all mutual opportunities were leveraged. – BERNAMA

News

Milieu Insight Survey Finds 55% of Southeast Asians Are Ready for Domestic Travel

SINGAPORE – With the summer season approaching, Southeast Asia is poised for a rise in local travel, especially in the Philippines and Indonesia, where interest in domestic trips is highest. However, safety and affordability are pivotal concerns for many regional travelers. Milieu Insight, a leading survey software company in Southeast Asia, has released its latest findings on summer travel intentions among Southeast Asians. Milieu Insight’s quantitative study, drawing from its survey community, engaged 1,966 respondents from the Philippines, Thailand, Indonesia, and Malaysia. According to the report, more than 60% of respondents prioritize safety and cost when selecting domestic travel destinations, and 55% are inclined to travel domestically this year. sheds light on the summer travel plans of numerous Southeast Asians. As individuals look to explore their own countries, the key factors guiding their choices are affordability and safety,” stated Gerald Ang, Founder and CEO of Milieu Insight. “Moreover, many travelers in Asia are increasingly budget-conscious, favouring family-oriented experiences and finding value in land transportation and road trips.” Inflation is fueling the preference for budget-friendly travel options, with international travel becoming more expensive. As a result, domestic leisure travel is expected to remain robust among Southeast Asians. A majority of travellers across the region are now financially prudent, with 62% placing cost as a top priority, closely followed by 63% who emphasize the importance of secure destinations and scenic spots. This trend underscores the need for marketers to promote local destinations known for their safety. Land transport has emerged as the preferred mode of travel for domestic vacations, with 74% of respondents opting for this mode. Thai and Indonesian travellers, in particular, favour land transportation, with 88% and 76% opting for road trips to explore domestic destinations. Family-focused travel experiences, including culinary exploration and immersive touring, are gaining traction. Around 79% of Southeast Asian travellers plan to embark on adventures with their families, prioritizing quality time together and seeking out local hidden gems. While hotels remain the top choice for accommodations (preferred by 78% of respondents), alternative options like Airbnb and pool villas are gaining popularity. In Malaysia, 44% of travellers seek personalized experiences through Airbnb, while in Thailand, 47% are drawn to the luxury and exclusivity of pool villas. As Southeast Asia gears up for summer travel, there is a notable willingness among most travelers to opt for domestic destinations due to proximity and affordability. This shift reflects a pragmatic mindset amid evolving global circumstances, with safety and cost considerations taking precedence in travel planning. The study, conducted through Milieu Insight’s survey community, provides a comprehensive overview of Southeast Asian summer travel intentions, highlighting key insights and emerging travel trends. Representative of the online adult population aged 16 and above, the fieldwork for this study was conducted from 7th to 31st March 2024.

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