CHINA: Hainan Airlines To Surrender Its Stake In Urumqi Air

Hainan Airlines, a carrier affiliated with conglomerate HNA Group, is planning to withdraw its holdings from low-cost airline Urumqi Air but retain management rights.

Hainan Airlines has reached an agreement with the Urumqi municipal government, that it will transfer its holdings of Urumqi Air to the latter.

After the transaction, the government or its designated subsidiaries will hold 70% of Urumqi Air’s shares, while HNA Holdings will hold 30%.

According to the agreement, the board of directors of Urumqi Airlines will be adjusted based on the shareholding ratio.

The chairman of the board of directors will be recommended by the government or its designated subsidiaries, while the general manager will be recommended by Hainan Airlines.

Under the leadership of the board of directors, the professional team of Haihang Holdings is responsible for the safety, production and operation management of Urumqi Air.

Urumqi Air is a low-cost airline headquartered in Urumqi, Xinjiang, People's Republic of China. It operates scheduled passenger services. Its main hub is Urumqi Diwopu International Airport in Urumqi.

The airline is one of the four founding members of the U-FLY Alliance.

Urumqi Air fleet consists of the following aircraft:

- Boeing 737-800: 16 Aircraft

- Embraer 190: 1 Aircraft

- Total: 17 Aircraft


Tourism Observer

CHINA: Hainan Airlines Sells Its Building For US$190M

Hainan Airlines, the largest civilian-run air transport company in China, says it has sold its wholly-owned subsidiary, Beijing Guosheng Property Management Co. Ltd., in a deal worth 1.299 billion yuan (US$190 million).

According to the report, 100% of the equity will be transferred to the Beijing Houpu Yunde Investment Management Partnership, which is 99.99% held by Beijing Vanke Enterprise Limited Company, a wholly-owned subsidiary of real estate giant Vanke Group.

The target company, Beijing Guosheng, was newly established by Hainan Airlines in July this year, having an estimated value of 1.739 billion yuan. Its main asset is the Beijing Hainan Airlines Building.

Hainan Airlines is part of HNA Group’s Aviation & Tourism arm. It is not unusual for HNA Group to sell off assets. The Chinese conglomerate sold its original headquarters, Wanghai Science and Technology Plaza, to Sunac China in August.

Meanwhile, Jinjiang International confirmed that it would acquire a 100% stake in the Radisson Hotel Group from HNA Group.

Hainan Airlines Co., Ltd. is an airline headquartered in Haikou, Hainan, People's Republic of China. It is the largest civilian-run air transport company, the fourth-largest airline in terms of fleet size in the People's Republic of China, and tenth-largest airline in Asia in terms of passengers carried.

It operates scheduled domestic and international services on 500 routes from Hainan and nine locations on the mainland, as well as charter services. Its main base is Haikou Meilan International Airport, with a hub at Beijing Capital International Airport and several focus cities.

Hainan Airlines was established in October 1989 as Hainan Province Airlines in Hainan, the largest special economic zone in China. Hainan Province Airlines became China's first joint-stock air-transport company following a restructuring in January 1993 and began scheduled services on 2 May 1993.

The initial 250 million yuan (US$31.25 million) was financed by the Hainan government (5.33%) and the corporate staff (20%). The rest came from institutional shareholders. In 1996, the provincial airline was renamed Hainan Airlines.

American Aviation LLC, controlled by George Soros, had been a major shareholder of the airline since 1995.

Executive-jet operations with a Bombardier Learjet 55 were added in April 1995. In 1998, Hainan Airlines became the first Chinese carrier to own shares in an airport after it purchased 25% stake of Haikou Meilan International Airport.

In 2000, HNA Group was established and became the third largest shareholder (7.31%) of Hainan Airlines. It also controlled Shanxi Airlines, Chang An Airlines and China Xinhua Airlines. By 2003 Hainan, the main airline, overtook Chang'an as the fourth largest airline in China.

In 2007 Grand China Air was established as the new holding company, when American Aviation became its subsidiary.

On 29 September 2005, HNA Group ordered 42 Boeing 787-8s, 10 of which were earmarked for the Hainan Airlines fleet. In January 2006, China Aviation Supplies Import and Export Group Corporation ordered 10 Boeing 737–800s for Hainan Airlines.

In September 2006, Hainan Airlines ordered another 15 Boeing 737-800s.

On 4 December 2007, Hainan Airlines acquired three Airbus A340-600s on lease from International Lease Finance Corporation. On 14 November 2007, Hainan Airlines received its first Airbus A330-200.

In June 2007, Hainan Airlines ordered 13 Airbus A320-200 aircraft. In late 2007, Hainan Airlines ordered 50 Embraer ERJ-145s and 50 Embraer 190s, with a total value at list price of $2.7 billion USD.

The 50-seat ERJ-145s were produced by the Harbin Embraer Aircraft Industry (HEAI) joint venture, located in Harbin. E-190 deliveries began in December 2007. Due to the global financial crisis and huge losses incurred in 2008, the ERJ-145 order was reduced to 25. The E-190 order remained unchanged.

On 25 March 2015, Hainan Airlines announced its intention to acquire 30 Boeing 787-9s, which are all to join the Hainan Airlines Fleet. The delivery of the aircraft is scheduled to be completed by 2021.

Two leased Boeing 787-9 aircraft were delivered in Spring 2016. Hainan Airlines will also be among the first operators of the COMAC C919, with deliveries beginning in the 2020s.

Hainan Airlines and the HNA Group have their headquarters in the HNA Building in Haikou, Hainan with other office premises HNA Tower in focused cities including Beijing, Chongqing, Guangzhou and Shanghai.

It was previously headquartered in the HNA Development Building a.k.a. the Haihang Development Building along Haixiu Road in Haikou.

As of 31 December 2016, Grand China Air is the direct parent company of Hainan Airlines (24.33% shares directly; an additional 1.29% shares via a subsidiary American Aviation LDC), which was partially owned by Hainan Development Holdings (24.97%), HNA Group (23.11%), Starstep (9.57%), Haikou Meilan International Airport (8.30%), Shenhua Group (5.56%) and other shareholders.

HNA Group owned 3.53% shares directly and via Changjiang Leasing, owned an additional 3.08% shares as the second largest shareholder. Haikou Meilan International Airport was the third largest shareholder for 5.13% shares.

Moreover, HNA Group also owned Haikou Meilan International Airport partially, as well as Hainan Airlines as cross ownership. A private equity fund that was managed by Shanghai Pudong Development Bank, owned 4.91% shares as the fourth largest shareholder.

Hainan Airlines operates several self-owned airport lounges at its main hub and focus cities including Beijing (T1 HNA Exclusive Terminal), Haikou, Xi'an, Guangzhou and Urumqi.

In addition, the airline will soon open its exclusive international departure lounge at its main international hub Beijing International Airport Terminal 2. The airline also operates an exclusive Transit Lounge for transferring HNA Group passengers at Beijing Airport Non-restricted area.

Hainan Airlines's frequent-flyer program is called Fortune Wings Club. The airlines's subsidiaries Hong Kong Airlines, Lucky Air, Tianjin Airlines, Beijing Capital Airlines, Fuzhou Airlines and parent company Grand China Air are also parts of the program.

It is also possible for passengers to collect miles on Alaska Airlines, Etihad Airways and the airlines which have codeshares with Hainan Airlines.

Members can earn miles on flights as well as through consumption with Hainan Airlines's credit card. When enough miles are collected, members can be upgraded to Elite members which are divided into four tiers: Fortune Wings Platinum membership, Gold membership, Silver membership, and Flying Card membership. Elite membership get extra services.

Hainan Airlines is one of eleven airlines worldwide rated as five-star by Skytrax, along with All Nippon Airways, Asiana Airlines, Cathay Pacific, Etihad Airways, EVA Air, Garuda Indonesia, Japan Airlines, Lufthansa, Qatar Airways, and Singapore Airlines.

Hainan Airlines operates seven bases across China: Beijing–Capital, Guangzhou, Haikou, Hangzhou, Sanya, Shenzhen and Xi'an. It operates an extensive network across the People's Republic of China, connecting Asia, Europe, North America and Oceania.

It serves nearly 500 domestic and international routes and flies to more than 90 cities.

Hainan operates international regular flights and offers charter flights to 41 various destinations in 21 countries such as flights from Beijing to Almaty, Toronto, Berlin, Brussels, Seattle/Tacoma, St. Petersburg, Moscow, Tel Aviv, Chicago, Las Vegas, San Jose/Silicon Valley and Boston; Beijing, Xi'an, Dalian, Guangzhou, Haikou to Taipei; Beijing, Haikou, Nanning to Bangkok; Hefei via Haikou to Singapore and others.

Hainan also received official approval from the US DOT to begin nonstop flights between Beijing and Chicago. As of June 2014, Hainan began servicing Boston directly with a four-times-weekly 787 flight from Beijing Capital International Airport.

It was the first direct flight between Boston and China. The airline began service in the second quarter of 2013 with the Boeing 787 Dreamliner aircraft. It was the first Chinese carrier to offer flights between the two cities. Flights from Beijing-Capital to Chicago-O'Hare began on 3 September 2013.

On 23 October 2015, Hainan announced flights to Manchester, United Kingdom, starting in summer 2016. Hainan announced the launch of a direct route between Beijing and Calgary, Canada, as of 30 June 2016.

During the second half of 2017, Hainan Airlines began flights from Shanghai to Tel Aviv and restarted flights from Shanghai to Brussels. In late September 2017 Hainan Airlines commenced direct flights to and from Brisbane, Australia, several times per week, and also to Belgrade, Serbia, via Prague, every Monday and Friday.

On 8 March 2018, Hainan Airlines announced flights between Changsha and London Heathrow, commencing 23 March 2018 and on 15 March 2018, they announced round trip flights between Beijing–Capital, Dublin, and Edinburgh commencing 12 June 2018

Hainan Airlines codeshares with the following airlines:

- Aegean Airlines

- Aigle Azur

- Air Serbia

- Alitalia

- Alaska Airlines

- American Airlines

- Azul Brazilian Airlines

- Beijing Capital Airlines

- Brussels Airlines

- Czech Airlines

- Etihad Airways

- EVA Air

- Grand China Air

- GX Airlines

- Hong Kong Airlines

- Korean Air

- S7 Airlines

- Suparna Airlines

- Tianjin Airlines

- Uni Air

- WestJet

- Virgin Australia

Hainan Airlines fleet consists of the following aircraft:

- Airbus A330-200: 09 Aircrafts

- Airbus A330-300: 20 Aircrafts

- Airbus A350-900: 02 Aircrafts

- Boeing 737-700: 02 Aircrafts

- Boeing 737-800: 155 Aircrafts

- Boeing 737 MAX 8: 10 Aircrafts

- Boeing 787-8: 10 Aircrafts

- Boeing 787-9: 25 Aircrafts

- Total: 233: Aircrafts


Tourism Observer

CHINA: Hainan Airlines Looking For US$1.8 bn In Bank Loans

Hainan Airlines, a carrier affiliated with the conglomerate HNA Group, is planning to borrow 7.5 billion yuan (US$1.08 billion) from banks, according to a company statement.

The National Development Bank is the lead and agent bank, which will provide the company with 1.5 billion yuan.

Six other banks including, Exim Bank of China, Industrial and Commercial Bank of China, Agricultural Bank of China, China Construction Bank, Bank of China and Postal Savings Bank of China will each offer the company 1 billion yuan.

The loan period is three years, while the grace period is one year.

Hainan Airlines said the funds will be used for operational expenses such as buying aviation fuel, aviation materials as well as maintenance and landing fees.

Last summer, Airbus refused delivery of a number of Airbus A330 aircraft to Hainan Airlines because the carrier was not able to pay for them. Parent company HNA is also in turmoil due to a shortage of capital and the sudden death of its chairman, who fell to his death in France.


Tourism Observer

More Airlines Expanding Routes

There’s a new entrant in the U.S.-Hong Kong market; Delta will put a new aircraft on a China route and will beef up transpacifc code-sharing; Cathay Pacific will add another U.S. gateway next year.

United is eliminating first class on many routes and cuts back China service; a Lufthansa affiliate is adding a new business class; LATAM is coming to Las Vegas; San Jose gets more service to Mexico; Copa begins Denver service; an Italian airline plans new U.S. routes.

Alaska ends its relationship with two European partners; and Norwegian revamps its U.S. schedules next summer, adding frequencies from the West Coast.

Hong Kong Airlines, a Hong Kong-based sister company of China’s Hainan Airlines, started service to the U.S. for the first time.

The carrier is using a new Airbus A350-900 on the Los Angeles-Hong Kong route, configured with 33 lie-flat business class seats, 109 premium economy seats with 34-inch pitch, and 193 regular economy seats with 31-32 inch pitch.

The new LAX-Hong Kong flights operate four times a week (Monday, Wednesday, Friday and Sunday), with a 10:45 a.m. departure from LAX. Hong Kong Airlines plans to add San Francisco service in late March, and New York flights later next year.

So far, all of Delta’s Airbus A350-900s have been scheduled for routes out of Detroit or Atlanta, but now the airline is planning to operate one of the new planes out of Los Angeles.

Delta plans to start flying the new plane from LAX to Shanghai Pudong on July 2, alternating days with a 777-200LR until July 18, when the A350 went onto a daily schedule.

Delta’s A350s – which feature the airline’s new Delta One suites and new international premium economy section – are already used on flights from Detroit to Tokyo Narita and Seoul Incheon, and are slated to start Detroit-Beijing service January 17.

Detroit-Amsterdam and Atlanta-Seoul March 24; and Detroit-Shanghai April 19.

Meanwhile, Delta will expand code-sharing with its transpacific partner Korean Air on January 10, putting the DL code onto Korean’s flights to Seoul Incheon from Los Angeles and Las Vegas.

In other transpacific news, Cathay Pacific has unveiled plans to add another East Coast gateway in mid-September 2018, when it will start flying from Hong Kong to Washington Dulles.

The carrier already serves Boston, New York JFK and Newark. Cathay reportedly plans to fly the route – which will be the longest in its system – four days a week with a brand-new Airbus A350-1000.

A couple of months ago, we reported on United’s plans to reconfigure its international long-haul 777-200s, putting in new lie-flat Polaris business class seats, taking out first class, and going from nine-across to 10-across seating in economy.

The reconfigured 777s will be deployed, based on the elimination of first class from seating availability. It shows the elimination of 777 first class in late April from San Francisco to London, and from Washington Dulles to Brussels, Frankfurt and Tokyo Narita.

At the end of August from Chicago O’Hare to Beijing, Hong Kong, Tokyo Narita, Shanghai, Sao Paulo, Frankfurt and Munich.

Meanwhile, United’s seasonal summer route from San Francisco to Xi’An, China, which had previously been scheduled for three 787 flights a week from May 6 through September 4, has been eliminated for 2018.

Las Vegas is due to get its first non-stop service to South America next summer.

LATAM Airlines Brasil has filed plans to operate a 767 three times a week between Las Vegas and Sao Paulo from June 21 through August 31.

Lufthansa’s lower-cost leisure affiliate Eurowings plans to launch new transatlantic routes in 2018, including JFK-Dusseldorf starting April 28, Dusseldorf-Miami as of May 4, and Dusseldorf-Ft. Myers beginning May 3.

Now it appears that the airline will try to entice business travelers onto those flights by adding a new business class cabin.

The new Eurowings cabin, simply called Bizclass, will feature seats that recline fully and will include upgraded meals and other special amenities. Details of Eurowings’ new Bizclass were introduced in March at the big ITB Travel Fair in Berlin.

Mexican low-cost carrier Volaris, which already had service out of San Jose to Guadalajara, has now added two more routes.

Volaris has started twice-weekly flights from SJC to Morelia on Fridays and Sundays, as well as twice-weekly service from SJC to Zacatecas on Mondays and Thursdays. Next summer, Aeromexico is due to begin SJC-Mexico City flights.

Panama’s Copa Airlines, a member of United’s Star Alliance family, has added Denver as its 13th U.S. gateway.

The carrier has kicked off new non-stop service four days a week from Denver to Panama City, with Denver departures on Monday, Wednesday, Friday and Saturday at 10:16 p.m. Copa offers onward connections in Panama to 55 Latin American destinations.

Italian carrier Meridiana plans to add two U.S. routes next summer. On June 1, it will begin daily service from Milan Malpensa to New York JFK, followed up on June 8 by four flights a week from Malpensa to Miami.

The airline will use a 247-passenger, two-class Airbus A330 on both routes.

On April 30, 2018, Alaska Airlines ended its Mileage Plan partnership with Air France-KLM – not really a surprise considering that the European duo has a joint venture partnership with Alaska’s arch-rival Delta.

Alaska and Delta ended their own mileage partnership last spring. The Alaskan carrier notes that it still has partnership agreements to Europe in place with British Airways, Finnair, Icelandair and Condor.

The latest schedule updates from Norwegian show the low-cost carrier plans to boost service on several U.S. routes in late March, increasing its weekly Barcelona frequencies from three to four out of Los Angeles, from three to five out of Oakland, and from four to six out of Newark.

The carrier will also boost LAX-Copenhagen service from three flights a week to four.

At Boston, Norwegian plans to increase London Gatwick service from four flights a week to seven starting June 12, but it will discontinue its seasonal Boston-Oslo and Boston-Copenhagen flights.


Tourism Observer

VIETNAM: Will Vietnam Declare Code Of Conduct For Only Chinese Tourists?

Last year March, Vietnam’s Ministry of Culture, Sports and Tourism announced that it had released a nationwide code of conduct for tourists for the first time, instructing visitors on how to behave while on holiday.

Details such as where and how the guide was distributed are scant, but the Vietnam National Administration of Tourism’s (VNAT) official website declared that it would help international and local tourists, and tour operators “respect local customs and culture, abide by regulations at both tourist and public sights, provide help for the disabled, the elderly, children and women, and protect the environment.

Unfortunately, the code does not seem to contain any information pertaining to China’s controversial nine-dash line.

If it had, the headline-grabbing incident in May that saw a group of Chinese tourists having to remove T-shirts asserting Beijing’s claim over disputed South China Sea territory upon arrival at Cam Ranh International Airport, south of Nha Trang, might never have happened.

To say that relations between the two neighbours are strained is to put it mildly, with anti-China sentiment culminating in protests across Vietnam over the past few days against proposed special economic zones critics believe would favour Chinese investors.

And disapproval is not confined to government policy, with calls to restrict or even refuse visitors from the Middle Kingdom, according to an article published on June 15 by online newspaper VietnamNet, which went on to suggest that a code of conduct should be created specifically for Chinese tourists.

This follows widespread condemnation of zero-dong package tours, which inject little into the local economy, and the fining of Vietnamese tour guide Tran A Hung, in Da Nang, for having allowed a Chinese woman in his charge to spread distorted information about the history of Vietnam, in April.

The woman, Wang Jihong, told fellow travellers that the traditional Vietnamese dress, the áo dài, was based on the cheongsam and that Vietnam used to belong to China.

In the first five months of the year, Vietnam received 6.7 million tourists, an increase of 27.6 per cent on the same period in 2017, according to VNAT. Of those, 2.1 million came from China, 37 per cent more than in the corresponding months last year.

However, the current tension is likely to affect arrivals. Travel agencies were hurrying to alter routes and schedules as demonstrations broke out, while social-media users have announced that tour companies have begun cancelling trips following embassy and consulate warnings.

Following widespread anti-China protests in May 2014, the number of Chinese visitors to Vietnam fell sharply. If history repeats, the country might lose its top source of tourists, and that targeted code of conduct will not be necessary.

While Vietnam may be willing to lose out on Chinese travellers, Scottish businesses are hoping to cash in on a recent uptick, with the introduction of the first ever direct flights between the mainland and Scotland.

Hainan Airlines launched the Beijing to Edinburgh route on June 12, and already businesses are scrambling to fulfil Mandarin-speaking positions.

A hotelier in the Highlands, said: I struggled to get a Mandarin-speaking receptionist. There aren’t very many Mandarin speakers in Drumnadrochit.

While current numbers remain modest – a mere 41,000 Chinese tourists visited Alba in 2016, spending a total of £36 million (US$47.7 million) between them, according to VisitScotland, the castle-filled country wants a slice of the world’s most lucrative wedding market and is courting Chinese couples with its countless wedding-picture-perfect locations.

We are seeing more and more Chinese couples choose Edinburgh’s historic heart to take official photos prior to their wedding, said Rob Lang, chairman of Edinburgh Tourism Action Group’s China Ready initiative.

That such a drive exists just goes to show how serious Scottish destinations are about making this particular union a happy one.


Tourism Observer

CHINA: Hainan Airlines Introduces Flights To Edinburgh

Hainan Airlines inaugurated the first-ever direct flights between Scotland and China today with HU749, the first service between Beijing and Edinburgh.

The four weekly flights to the Scottish capital is the country’s first connection to the Far-East.

Gordon Dewar, Chief Executive of Edinburgh Airport said: This is a momentous day as we connect not only Edinburgh and Beijing for the first time, but Scotland and China too.

It is a route which has immense opportunities for our countries, from tourism and business to culture, education and more.

We know Edinburgh is second only to London for Chinese tourists and we are eager to welcome more people to our fantastic capital city, but it’s also about connecting people from Scotland to Beijing and wider China thanks to Hainan’s hub network.

Hainan is one of the world’s most prestigious airlines and we are proud to be working with them. This is something the city has worked towards for a number of years and we are delighted to see this day finally arrive.

Minister for Business, Innovation, and Energy, Paul Wheelhouse, said: Securing direct links between Scotland and China is one of our key priorities for route development.

This new direct Beijing to Edinburgh route is an exciting first chapter indirect air connectivity between Scotland and China. It will enable China and Scotland to become closer in partnership and in travel time, building upon existing strong links for business and tourism.

The Scottish Government and our agencies look forward to working with Hainan Airlines and Edinburgh Airport to make this route a great success.

Malcolm Roughead, Chief Executive of VisitScotland, said: This first direct service from China to Edinburgh represents a gear change for Scottish tourism and further cement Scotland’s reputation as a world-class destination.

As the Chinese market has grown over the years so too has the Scottish capital’s popularity with Chinese visitors and it continues to be the top destination outside of London.

Through our ongoing work with key Chinese tour operators, we have seen visitor itineraries extending over the years.

Bringing visitors from China directly into the heart of Scotland will create greater opportunities for tourism businesses right across the country, as visitors stay longer and explore further.

Paul Lewis, managing director of Scottish Development International said: We’re working hard to ensure that more Scottish companies can take advantage of trade and investment opportunities in China, while at the same time trying to attract more Chinese companies to base their European operations here.

A direct air route is a significant enabler of both these goals and we welcome Hainan Airlines’ first ever route between Edinburgh Airport and Beijing Capital International Airport.

The flight currently includes a stopover in Dublin after its arrival in Edinburgh due to excessive demand interest at that airport for Chinese flight.

On Tuesdays and Saturdays, the aircraft will arrive into Edinburgh at 0600 and will then depart at 0800 to Dublin, to which it will carry on to Beijing after departure from Dublin.

On Thursdays and Sundays, the flight arrives into Edinburgh from Dublin at 0910 before departing for Beijing at 1110.

This flight continues the carrier’s continued expansion out of the UK, having launched their first Manchester route over two years ago this month.

As the carrier is slowly receiving the licensing from the CAAC - Civil Aviation Administration of China, it is becoming a little clearer into where the carrier wants to start their expansion.

With services from Capital Airlines out of Gatwick being operated on already, they are starting to cover all areas of the UK. The other airports of interest could potentially be those such as Glasgow, Birmingham and potentially Stansted if the demand appeals to HNA.

In terms of investment, the carrier is definitely putting money into the route developments they establish.

This comes following the news that the HNA board are looking to raise over $1 billion in capital to fund certain elements of the airline, placing worries into the security of these routes in case the airline has to downsize.

However, Hainan seems to be playing the UK market very strongly and are slowly, one by one, opening up China to most of the UK and beyond.

Especially with the Dublin connection point, where they can capture some of the Irish catchment areas on top of this, thus boosting their presence into Europe as well.


Tourism Observer

EUROPE: Chinese Air Travel Shoots Up, Europe Gains A Great Deal

Europe is set to benefit from increasing Chinese air travel with extra flights and more capacity for 2018.

The continent will see a boom in capacity on flights from China, according to the latest figures from travel pattern analyst ForwardKeys.

It reports that nine new routes and one resumed route will start during the first half of 2018, and a further three are in the pipeline.

At least four China-Europe routes are already planned for the second half of this year.

This follows an expansion in Chinese flights to the US and Australia over the past two years.

ForwardKeys predicts future travel patterns by analysing 17 million booking transactions a day.

According to its statistics, by June there will be an extra 30 flights a week from China to Europe and, based on an estimation of 200 seats per flight.

This means 6,000 more seats will be available for Europe-bound Chinese travellers.

Excluding Russia, the average total number of seats available each week last summer was 150,000.

In March alone new flights include:

- Twice weekly from Shenzhen to Madrid by Hainan Airlines.

- Resumption of three times weekly flights from Shenyang to Frankfurt by Lufthansa.

- Twice weekly from, Shenzhen to Brussels by Hainan Airlines in March 2018.

Finland is benefiting from a strong Asia strategy on the part of Finnair, which announced the opening of its seventh direct Chinese route in May 2018.

Spain, the UK and Ireland are seeing a mix of increased tourism alongside healthy Chinese business investment.

This growth will be building on an already strong start to the year.

Europe had a 10% market share of the outbound Chinese market and saw a 7.4% increase in Chinese travellers during January and February this year.

Turkey recovery after terrorist attacks increased by 108.2%, and Greece by 55.7%, compared to the same period last year.

Travel in the opposite direction is also set to increase.

Flight bookings to China, in the coming six months, from the rest of the world, are 11.8% ahead of this time last year.

Bookings from Americas, which is responsible for 25% of travel to China, are currently 24% ahead of last year.

The EU-China Tourism Year was launched in Venice in January, heralded as the largest-ever official EU-wide initiative to grow Chinese tourism across Europe.

ForwardKeys chief executive and co-founder, Olivier Jager, said It seems that the EU-China Tourism Year is having a positive impact on travel in both directions.

The Chinese have been growing in confidence for international travel for some time now and that trend is being reciprocated.

Europe clearly has a lot to gain from this increased capacity because the Chinese are ready to spend money on luxury goods while on holiday, providing good opportunities for European retailers.


Tourism Observer

CHINA: Hainan To Become Asia’s Hawaii,US Granted Visa-free Access

China’s government has opened up to visitors from 59 countries, giving them visa-free entry to Hainan island, in an unprecedented move to spur economic growth and boost tourism in the backwater province.

Starting May 1, passport holders from the UK, the US, Canada and scores of other European and Asian countries were allowed to enter Hainan for stays of up to 30 days, according to an announcement Wednesday by the State Immigration Authority.

Absent from the list are African countries, countries on the Indian subcontinent, as well as three members of the Association of Southeast Asian Nations (Asean): Vietnam, Laos and Cambodia.

The latest move is an expansion from a 2000 policy that permitted tour groups from 21 countries to enter Hainan visa-free for up to two weeks.

The new move lets individual travelers enter Hainan and extends the period of stay.

The move is likely to benefit Chinese airlines, including the island’s flagship carrier, Hainan Airlines, a unit of the troubled Chinese conglomerate, HNA Group.

The policy was expected to sharply increase the number of international tourists traveling to Hainan, and to help the island province eventually become Asia’s Hawaii.

Meanwhile, the new policy would benefit companies who have operations there, including airlines and developers, he said.

Long promoted as China’s Hawaii, the 35,000-square-kilometre tropical island in the northwest of the South China Sea with Vietnam to the west and the Philippines to the east, has historically been regarded as a backwater and afterthought.

It has a long way to go to become an international destination.

The number of international tourist arrivals only crossed the one million mark last year. That was a mere 1.6 per cent of the 60 million domestic visitors that arrived in 2017.

Bali, which is one-sixth the size of Hainan, greeted more than 5 million foreign visitors last year.

Hainan’s tourism revenue totalled 81.2 billion yuan in 2017.

But it is now at the centre of one of Chinese President Xi Jinping’s initiatives to further open up the country’s tourism and financial sectors to attract more foreign investors, part of which is to transform Hainan into an international tourism destination and a free trade port.

Hainan’s service industry accounts for more than half of its 446.3 billion yuan (US$70.9 billion) gross domestic product (GDP) in 2017, according to mainland state media reports.

Revenue for the tourism sector, foreign and domestic arrivals totaled 81.2 billion yuan.

Although it has been China’s biggest special economic zone since 1988, the island has trailed rival zones such as Shenzhen in development and status.

In the five years through 2017, it attracted less than US$10 billion in foreign investment, only 1.5 per cent of China’s total and has struggled to find its place in the nation’s economic landscape.

Resorts such as Fosun-owned Club Med has built the 10 billion yuan (US$1.6 billion) luxury Atlantis Sanya resort in Sanya, which is expected to attract international family tourists.

Department store operators and Retail businesses including Wangfujing Group and Dalian Wanda could benefit from more tourists visiting.

Property developers such as China Evergrande, China’s third-largest developer by sales, is building Ocean Flower Island, a cluster of hotels, theme parks, malls and conference centres on an artificial archipelago off Hainan’s northwest coast.

Airlines like Hainan Airlines Holding and rival domestic carriers could benefit from more domestic and foreign tourists.

The Chinese government’s grand plan to open up Hainan is not only politically and economically significant for the province itself, but it will also to some extent affect Macau’s position as a casino and tourism hub in southern China in the coming decades.

The plan is ambitious. In a guiding opinion to comprehensively deepen Hainan’s reform and opening up, jointly released by the State Council and Communist Party’s Central Committee this month, the government recognises the island’s achievements as a special economic zone.

It also sets a goal of turning Hainan into a free-trade port, with major elements of the system in place by 2020.

The plan calls on Hainan to position itself strategically as a transit point for the central government in Beijing to implement the Belt and Road Initiative, and to remake itself into not just an international tourist draw, but also a centre for sustainable ecological development.

In addition, the directive encourages Hainan to develop its free-trade zone by liberalising some rules, such as by allowing hotels access to foreign TV channels, and improving its infrastructure.

Most importantly, the government proposes the development of beach and water sports, as well as horse racing, and to explore the development of sports lottery and instant lottery on major international events.

Finally, the directive urges Hainan to develop local talent and cooperate with Hong Kong and Macau in maritime affairs, while also forging closer cooperation with other economies in the Greater Bay Area and Taiwan.

The message from Beijing is very clear. Hainan is going to learn to combine the Hong Kong and Macau models in developing the island’s tourism, horse racing and lottery industries.

As well as position itself as a prosperous transit point for China to reach out to economies in the Indian Ocean and other parts of Asia, under the nation’s belt and road plan.

The implications for Hong Kong and Macau are equally obvious.

While Hong Kong’s horse racing industry is likely to face some competition from a new horse racing lottery in Hainan, if and when it materialises.

Macau’s casino industry may lose some mainland tourists to Hainan, where its hotels are likely to experiment with gaming on a smaller scale.

Though the government directive did not mention the word casino, it made a point of noting the need for Hainan to tighten its measures to deter money laundering, implying that casinos would perhaps be allowed in the province sooner or later.

In 2013, Hainan authorities shut down a casino bar that had been operating illegally after a report drew attention to it.

A year later, the local government firmly stated that no casino operations would be tolerated. But that was then.

Now, with Beijing’s pledge at the Boao Forum for Asia that it would continue to open up its economy, the time is politically ripe for the designation of Hainan as a tourism hub in the vein of the Hong Kong and Macau models.

The establishment of casinos in Hainan would be a matter of time, given the logical implications of setting up a sports lottery in the province in 2020.

Macau’s casino industry cannot escape being affected somewhat.

Development of gaming in Hainan will mean that Macau is no longer be the only gambling hub in China.

Mainland Chinese tourists who used to go to Macau may opt to go to Hainan instead.

As well, mainland Chinese entrepreneurs may also decide to invest in Hainan rather than in Macau’s casino industry.

In 2002, mainland business people were discouraged from investing in Macau’s casino sector to give Macanese business people more opportunities to win a stake in the casino concessions that the government was granting.

Giving Hainan the chance to develop its tourism hub will provide a window of opportunity for mainland Chinese capital to expand to the province.

This will lead to a balanced model of economic and tourism development in the southern border regions of China, stretching from west to east, and from Hainan to Fujian.

The ultimate geopolitical target is perhaps Taiwan, which would be under tremendous pressure to join the economic union in the Greater Bay Area in southern China.

As for Hong Kong, its horse racing industry, which attracts tremendous interest from mainlanders, will surely serve as a model for the Hainan horse racing lottery.

Over the past decade, mainland academics studying the sports lottery industry and casino development have been paying close attention to the models of Hong Kong and Macau.

The establishment of the lottery hub in Hainan is a testimony to the late Deng Xiaoping’s remark that China would create many Hong Kong-style cities in its drive for economic modernisation.

Macau and Hong Kong need to embrace the development of more mainland cities and regions, in parallel to their own more liberal economies, as it would benefit the region as a whole.

Hainan’s development from 2020 onwards may give Hong Kong and Macau some competition, but it will not constitute a threat to the two economies.

Knowledge transfer from Hong Kong and Macau to Hainan should also be encouraged, as it will do a lot to help the special economic zone modernise in this next phase of its development.

Both Hong Kong and Macau will have to integrate more closely with other economies in the Greater Bay Area, to fully use the space, talent and technological advancement of the mainland, and to cooperate with Hainan in developing cruise and tourism industries.

Amid the new challenges that will come from the repositioning of Hainan, Macau and Hong Kong must continue to strengthen themselves economically, and position themselves as the unique casino hub and financial and monetary centre, respectively, in southern China.

China is drafting a proposal to allow gambling on Hainan Island, in what would be an unprecedented move that could reshape gaming in China's territories and transform the economy of a strategic southern province.

Government agencies under a party reform group headed by President Xi Jinping are considering allowing online gaming, a lottery or sports betting in Hainan, said the people, who asked not to be identified because the discussions aren't public.

The proposal, which is still in an early stage, could open the door to physical casinos over the long term, two of the people said. China currently bans gambling and casinos on the mainland.

The proposal is part of a wider plan that includes relaxing visa rules and building a new airport to draw more foreign tourists to Hainan.

That comes as the province faces a fiscal deficit and contends with the debt woes of HNA Group Co., its biggest conglomerate, which is facing pressure from creditors after a global acquisition spree.

An index of Macau casino stocks tumbled on the news. Sands China Ltd. and MGM China Holdings Ltd. dropped as much as 6 per cent, and Wynn Macau Ltd. fell as much as 6.7 per cent.

I think investors were shocked, I'm a bit surprised, said Sam Chi Yung, a Hong Kong based strategist with South China Financial Holdings Ltd.

It's difficult to say what the impact will be on their profits as it all depends on China's policy and how they arrange the license. But what's sure is that people going to Macau to gamble will drop.

Hainan, roughly the size of Switzerland, is often referred to as China's Hawaii for its beautiful beaches. It also serves as a jumping off point for Chinese naval and air force patrols in the South China Sea.

The people didn't comment on what laws would need to change or the timeframe for implementation. Provincial officials were preparing for a possible visit by President Xi in the coming months to promote development on the island, two people said.

That trip would kick start events marking the 40th anniversary of China's embrace of foreign investment under Deng Xiaoping, they said.

The Hainan plan would mark a dramatic shift in China's approach towards gambling and could directly threaten the $33 billion casino industry in Macau, the world's largest gaming hub with revenues five times larger than Las Vegas.

Macau has been shifting to attract Chinese tourists and families to the territory, which is the same market that Hainan currently draws.

China's leaders have agreed to build a new international airport in the area of Dongfang city on Hainan's western coast, according to the people familiar with the situation, who didn't share more specifics on plans to ease visa requirements.

The island now has three international airports, all located on the eastern coast.

China bans gambling everywhere except Macau, a former Portuguese colony, and Hong Kong, which was once ruled by Britain.

Currently, it's against the law to open casinos, organize gambling, profit from gambling, set up online betting websites and market overseas casinos to Chinese citizens.

It's also illegal to sell lottery tickets without approval from the Chinese government.

Allowing gaming on the mainland would be one way for Chinese authorities to limit capital outflows and ensure gaming revenue benefits the provincial economy.

Mr Xi's corruption crackdown in 2014 sent Macau gaming revenue into a slump for more than two years, prompting it to become a more family-friendly destination to target leisure gamblers and tourists.

About 70 per cent of Macau visitors are from mainland China.

Chinese authorities have also cracked down on gambling related activities. More than 10 employees of Australia-based Crown Resorts Ltd., controlled by billionaire James Packer, were arrested in 2016 and sentenced to months in jail for illegally promoting gaming.

Although gambling is illegal throughout China, the concept isn't new to Hainan. The State Council encouraged Hainan to explore a betting-type sports lottery in 2009 guidelines to turn it into an international tourism island.

A casino bar with baccarat tables opened in the resort town of Sanya in 2012 where players earned points they could trade for accommodation and shopping.

It was shut down shortly after the report. The owner, Zhang Baoquan said the government monitored the casino to test the market.

While China is the world's biggest tourism spender, it has had a tougher time attracting travelers from abroad.

In 2016, it drew 31 million visitors, less than half of the number welcomed by the US.

China has already poured billions of dollars into new highways, high-speed railways and other projects in Hainan, attracting prominent chains such as Hilton, Westin and St. Regis.

Still, Hainan took in far fewer overseas visitors than other premier Asian tourist destinations such as Bali, Phuket or Jeju in South Korea.

Chinese officials have shown a particular interest in Hainan in recent months, suggesting a coordinated effort to promote the island.

Vice Premier Liu Yandong urged local leaders to work to attract international tourists during a Jan 13 visit.

Foreign Minster Wang Yi is scheduled to address an event Friday in Beijing on presenting Hainan province.

One hurdle is the state of conglomerate HNA, which owns the province's airline and two of its airports.

HNA told major creditors and provincial government officials last week that it expects a potential shortfall of at least 15 billion yuan (S$3.14 billion) in the first quarter.

Companies linked to HNA secured 7.8 billion yuan in long-term loans from Chinese banks to finance an expansion project in Meilan Airport in Hainan, according to a filing with the Hong Kong stock exchange.

Half of the loan will be allocated to HNA Infrastructure Co. and the other half to Haikou Meilan International Airport Co., with the loan being guaranteed by HNA Holding Group.



Tourism Observer

CHINA: Hainan Airlines Introduces Boeing 787 Dreamliners On Manchester-Beijing Flights

China's Hainan Airlines announced Tuesday it is to operate Boeing 787 Dreamliners on its route between Manchester and Beijing.

Airport officials in Manchester said the Chinese carrier will use its flagship aircraft on the route from May 1.

It follows the announcement last month that Hainan Airlines is to increase the frequency of its flights at Manchester from four per week to five.

The airline's Boeing 787 Dreamliners are fitted with 36 business-class flatbed seats and 177 economy seats.

With state of the art technology, passengers will benefit from a quieter cabin and should feel more refreshed thanks to the better cabin pressure on board the aircraft, said a statement issued by Manchester Airport.

Loic Gao, general manager for Hainan Airlines in Manchester, said: We are very excited to see our very first Dreamliner landing at Manchester Airport from the 1st of May.

Having announced our increased frequency, it makes perfect sense to operate the Manchester route with our flagship aircraft.

Stephen Turner, commercial director for Manchester Airport, said: It's great news that Hainan Airlines will be using their flagship aircraft on the Beijing service.

Coupled with the news that they will be increasing frequency, it is testament to how successful the route has been performing.




Tourism Observer
www.tourismobserver.com

CHINA: 20 Million Passengers Went Through Changsha Airport in 2016

Changsha Huanghua International Airport handled 21.3 million passengers in 2016 according to CAAC statistics. This was an increase of close to 14% on the previous year and left the airport ranked 13th in China.

This was one place higher than in 2015 when it was still ranked below Wuhan Airport which it has now overtaken. Analysis of OAG Schedule Analyser data indicates that international traffic at the airport was around 7% of the total in 2015, increasing to about 9% in 2016.

Since 2007 passenger demand at the airport has grown by an average of over 11% per annum. Last year’s growth of almost 14% was the airport’s fastest increase in traffic since 2010. The year-on-year increase in passenger numbers was almost 2.6 million, the most in the airport’s history.

The airport finished building a second runway in 2016, which is expected to become operational during 2017. There are also plans to build a third runway in the medium-term.

Last year saw the airport welcome a number of new high-profile international services with Hainan Airlines, with the carrier beginning direct flights to Melbourne and Sydney in Australia, as well as Los Angeles in California.

Hainan Airlines drives growth but China Southern Airlines still #1

China Southern Airlines is the busiest carrier at the airport, accounting for just under 22% of annual scheduled seat capacity. A total of 39 airlines served Changsha in 2016 with the top 15 accounting for 89% of the airport’s capacity.

While China Southern and China Eastern Airlines appear to have both reduced capacity marginally at the airport in 2016, other carriers grew their presence at the airport considerably.

Hainan Airlines has jumped from fourth place in 2015 to second place in 2016 thanks to a 46% increase in seat capacity at the airport. Beijing Capital Airlines, Shanghai Airlines and Tianjin Airlines all grew their capacity at the airport by more than 40% last year.

Beijing is #1 Changsha route; high-speed rail may impact some routes in 2017

The busiest route from Changsha is the 1,355-kilometre sector to Beijing. Capacity on the route is provided by Air China, China Southern Airlines, Hainan Airlines and Xiamen Airlines.

Between them these four carriers offer 116 weekly flights, equivalent to around 17 flights per day. The fastest-growing domestic route in 2016 was Tianjin, where capacity was up almost 40%.

At the end of last year the opening of a new high-speed rail link to Kunming reduced travel time from Changsha from 19 hours to just five. This may have an impact on air travel demand on the 1,099-kilometre route in 2017.

As a result Haikou may become the airport’s second busiest route in 2017.

Currently the airport offers non-stop service to 20 international destinations in 13 countries. The leading international country markets currently are Thailand, South Korea, Taiwan and Malaysia.

There are non-stop flights to Europe, with China Southern Airlines operating a three times weekly service to Frankfurt. North America is now also served directly since Hainan Airlines began twice-weekly flights to Los Angeles in January 2016.

On 21 January 2016 Hainan Airlines celebrated the launch of the first non-stop service between Changsha and an airport in North America. Los Angeles was the lucky destination with the Chinese carrier offering twice-weekly (Mondays and Thursdays) flights using its 787s.

CHINA: Hainan Airlines Orders 19 Boeing Jets Worth US$4.2b

Hainan Airlines, which has spent billions of dollars into overseas acquisitions, announced plans on Monday to buy 19 Boeing aircraft for US$4.2 billion to help meet skyrocketing travel demand by Chinese consumers.

The company said in a statement to Shanghai’s stock exchange that it would buy 13 Boeing 787-9 passenger jets and six 737-8s, citing the continued rapid growth in China’s travel market as incomes rise.

It plans to issue 15 billion yuan (US$2.18 billion) in bonds to help fund the deal.

Chinese airlines have seen booming business in recent years, rushing to expand their fleets and route networks amid growth that the International Air Transport Association (IATA) predicts will take China past the United States to become the world’s largest air-travel market by 2024.

Hainan Airlines and its parent HNA Group have been among the most acquisitive players in a wave of overseas investments by Chinese companies in recent years.

HNA is a sprawling conglomerate with interests in aviation and tourism.

Last year alone, HNA purchased Brazil’s third largest airline Azul, Swiss airline catering company gategroup, and stakes in airline Virgin Australia and Portuguese national airline TAP.

A unit of privately held HNA announced in October plans to buy the aircraft leasing business of US-based CIT Group Inc for US$10 billion.

The Chinese government has encouraged companies to invest overseas to open up new markets.

Many companies obliged, pouring billions into overseas purchases to such an extent that Chinese authorities became worried over capital flight and the impact on the slumping yuan currency.

The government has since reversed course, denouncing “irrational” investment abroad and putting restrictions on fund outflows.

HNA Group A Chinese Travel Corporation To Buy Cruise Line

According to a report by Cruise Industry News, Chinese travel conglomerate HNA Group is eyeing the acquisition of an unnamed “major” cruise line.

The rumors of HNA’s potential acquisition of a cruise line sent cruise line stocks soaring, including industry giants such as Royal Caribbean, Norwegian Cruise Line, and Carnival Corp.

The potential move follows a busy last week for HNA Group, when it acquired a 16.79 percent stake in travel retail giant Dufry, as well as acquired a substantial stake in Rio de Janeiro’s Galeo airport. HNA Group previously had an unsuccessful foray into the cruise industry with the HNA Cruises brand and its MS Henna, which was sold for scrap in 2016. HNA cruise operations were suspended in 2015.

Even though HNA’s unsuccessful attempt to penetrate China’s domestic cruise market may be cause for skepticism about the rumored acquisition of an international cruise line, it wouldn’t be the first time HNA makes a substantial investment in a tourism industry giant.

In October last year, HNA Group acquired a 25 percent stake in Hilton Worldwide for $6.5 billion, only a few months after acquiring Carlson Hotels—owner of Radisson hotels. The company holds substantial investments in airlines, airports, airport services providers, duty-free operators, and even owns the third-largest stake in Deutsche Bank.

After withdrawing from China’s cruise market in 2015, it is currently left without a stake in China’s growing cruise market.

According to the Cruise Lines International Association (CLIA), China’s cruise industry grew at an annual compounded rate of 66 percent between 2012 and 2015, making it the fastest growing cruise tourism market in the world.

Market leaders in the cruise industry have reacted accordingly, repurposing ships for the Chinese market, building new ships designed with the Chinese market in mind, as well as entering joint ventures with Chinese partners to boost growth and domestic ship construction in China.

The Chinese government is also one of the biggest cruise industry stakeholders with various state-owned enterprises owning stakes in domestic cruise brands and shipbuilding plants.

Among the major players in the market is a domestic cruise brand owned by Carnival Corp, state-owned China State Shipbuilding Corporation (CSSC), and China Investment Corporation.

For HNA Group, it wouldn’t be the first time it goes into a market where the Chinese state has significant interests. HNA Group’s Hainan Airlines is the largest privately-owned airline in China, trailing only state-owned Air China, China Eastern Airlines, and China Southern Airlines, and has enjoyed substantial growth as a result of the booming popularity of international tourism in China.

With the growth of cruise tourism outpacing overall tourism growth in China, buying a significant stake in one the Chinese cruise market’s many suitors could present an exciting prospect for HNA Group in its search for future growth through acquisition.

With competition in the Chinese cruise market heating up, HNA Group and its strong foothold in China’s tourism industry could also present an ideal partner for cruise lines looking to China and Asia for future growth.

CAMBODIA: China To Surpus Vietnam In Supplying Tourists To Cambodia

Cambodia Association of Travel Agents says China will soon overtake Vietnam as the main source of the country’s tourists.

But there are major concerns over capacity management and how the country’s tourist industry will cope with the shortage of Chinese speaking guides.

The association president, Chhay Sivlin, says that the strengthening of relations between Cambodia and China and the government’s strategy to promote more Chinese tourist arrivals, will accelerate tourist arrivals over the next two years.

A flood of cheap Chinese tours could swamp popular tourist destinations especially in Siem Reap, the main tourist destinations, famed for Angkor Wat a World Heritage site.

But the dominant thread in tourism announcements, made by the private sector and government, is the underlying pressure to reach numerical targets that could compromise the quality of the travel experience and the environment.

The preoccupation is with expansion and catching up with neighbors. The main drivers are airlines that serve the destination from China, many of them offering cheap charter flights that bring in low-revenue package tours.

“Ministry of Tourism still needs to increase direct flights in order to reach the country’s target of welcoming 7 million tourists by 2020, including 2 million Chinese visitors,” he said.

Meanwhile, China came in second with 830,003 visits increasing 19.5% from 694,712 visits, according to Ministry of Tourism’s Statistics and Tourist Information Department figure.

In 2016, 13 airlines launched direct flights from different destinations in the region to Cambodia. The majority of the airlines are from China followed by Japan and Thailand.

Chinese airlines increasing flights, last year, included Hainan Airlines, Lucky Air, Tianjin Airlines, Spring Airlines and Beijing Capital Airlines.

Many opportunities for Cambodian tourism companies, more and more Chinese spend their holiday in their country, and they are becoming more and more rich and like to spend their money.

In 2013, China has overtaken South Korea to become the 2nd largest tourist source to Cambodia, with 305 500 visitors, up 47%, up according to the data from the Cambodian Ministry of Tourism.

Vietnam remained topped the chart among the top ten tourist arrivals to Cambodia with 584,800 tourists during the January-August period this year, up 12 percent year-on- year.

It added that during the first 8months of 2013, Cambodia has received a total of 2.77 million foreign tourists, up 19 % every year.

The minister said the country has set a target to attract between 1.5 million and 2 million Chinese tourists by 2020.

Chinese are rich now, more and more Chinese have been visiting abroad every year.

Close ties between Cambodia and China is an essential base to attract more Chinese to Cambodia.

Excellent ties between the two countries and improving Cambodian tourism quality and services will encourage more Chinese to this Southeast Asia nation in coming years.

Cambodian Minister of Tourism Thong Khon attributed the rise of Chinese traveller to attractive sites such as the Angkor Wat temple, a World Heritage Site, the beautiful coastline, like one of the top most Beautiful Bays.

Cambodia’s Angkor Wat temples, one of the world heritage sites. This Buddhist temple complex in Cambodia and the largest religious monument in the world and attracted 1.57 million foreign travellers in the first nine of the year, +6% compared with the same period in a year earlier.

During the January-September period this year, the monument welcomed 201,000 Chinese, +60 %.

“China is leading the growth of tourists to the site this year thanks to Cambodia-China excellent ties, broader promotion of the Angkor to the world, and more direct flight connection between Cambodia and China,” Chhoeuy Chhorn, administration chief of the Siem Reap provincial tourism department said.

Last year, the temples attracted 2.06 million foreign visitors, up 28 percent year-on-year.

Shopping

Chinese tourists use to do a lot of Shopping and purchase gifts, and local products.

Entertainement

They also like entertainement and will eat local food, sing in KTV and go to bars. They enjoy massage, and local SPA beauty services.

Hotels
You still have a lot of travellers with low budget, but more and more rich Chinese Business men travel in Cambodia and like nice hotels.

Internet
80% of Chinese people will search information online before their travel , and 66% will use Internet to book flight, hotel and prepare their trip.

You will find a lot of usefull information on many websites about Cambodia, and users’ experiences.
Look this for example

About 830,000 Chinese tourists visited Cambodia in 2016, a 19.5-percent rise year-on-year, according to a Cambodian Tourism Ministry report on Thursday.

Chinese holidaymakers accounted for 16.6 percent of the 5 million international tourists traveling to the Southeast Asian country last year, the report said.

It added that China ranked the second largest source of tourists to Cambodia after Vietnam, whose 959,600 people visited the kingdom last year, down 2.8 percent year-on-year.

Cambodia targets 2 million Chinese tourists by 2020.

Last year, the country launched a white paper which listed steps to be taken by tourism authorities to facilitate visits by Chinese tourists, such as providing Chinese signage and documents for visa processing, encouraging local use of the Chinese yuan currency, encouraging the use of Chinese language, and ensuring that food and accommodation facilities are suited to Chinese tastes.

Cambodia is famous for the 12th century Angkor Archeological Park in northwestern Siem Reap province. Besides, it has a 450-km pristine coastline stretching across four provinces in the country's southwestern part.

Tourism Minister Thong Khon estimated last month that tourism industry earned gross revenue of more than 3 billion U.S. dollars in 2016, accounting for 13 percent of the country's Gross Domestic Product (GDP).

CHINA: Hainan Airlines To Buy 13 Percent Of Virgin Australia For A$159 million

Billionaire Chen Feng’s HNA Group agreed to purchase a stake in Virgin Australia as the Chinese conglomerate adds to its more than $91 billion of assets worldwide.

The owner of Hainan Airlines will buy 13 percent of Virgin Australia for A$159 million ($114 million) and plans to raise that stake to about 20 percent over time, the Australian carrier said on Tuesday. Brisbane-based Virgin Australia already counts Air New Zealand, Singapore Airlines and Etihad Airways PJSC as major shareholders.

Branson 'a great believer in Virgin Australia'

Virgin Australia, with net debt of A$2.1 billion, has been reviewing its capital requirements and shares in the airline jumped in Sydney as it announced the fresh funds from HNA. The Chinese group’s toehold in Virgin Australia continues a multi-billion dollar spree that has scooped up everything from airlines to hotels and supermarkets.

In an alliance with HNA, Virgin Australia plans to start direct flights to and from China next year and fly some of those visitors on its network at home. Qantas Airways currently dominates that market. Last year, more than 1 million Chinese travellers visited Australia and by 2020, the number will climb to 1.5 million, Virgin said.

“We carry almost no traffic from China on our domestic network,” Chief Executive Officer John Borghetti said on a call with reporters on Tuesday. “This will change the dynamics. The way that China is growing, direct services in and out of China are very important.”

Virgin Australia stock rose as much as 7.1 percent to 30 Australian cents, matching HNA’s purchase price for its new shares. That’s still 46 percent lower than the price in April last year.

Two decades ago, HNA founder Chen walked the aisle of his startup Hainan Airlines’s single airplane serving refreshments. Last month, his conglomerate agreed to buy Swiss airline-catering company Gategroup Holding AG for about $1.4 billion. And yesterday, Air France said it’s in talks to sell half of its catering unit Servair to HNA.

HNA said in a statement Tuesday it will appoint one person to Virgin Australia’s board. The group will support the outcomes of Virgin Australia’s capital review, the Australian airline said in its statement.

That assessment won’t be completed “for a little while”, Borghetti said. Morgan Stanley previously estimated Virgin Australia needs a further A$700 million in financing, while Citigroup has said the requirement might be as high as A$853 million.

“It’s hard to say whether this is a big enough capital injection to change their fortunes,” said Daniel Mueller, an analyst at Forager Funds Management in Sydney.

The deal with HNA, which needs Australian competition and Chinese regulatory approvals, also complicates a potential shakeup among Virgin Australia’s largest investors after Air New Zealand in March said it may sell its 26 percent stake.

That stoked speculation that Singapore Air would snap up the stake. Billionaire Richard Branson, whose Virgin Group owns around 10 percent of Virgin Australia, said last week that Air New Zealand’s holding had attracted several potential buyers.

Singapore Air supported the HNA deal, while Air New Zealand wasn’t consulted because it no longer has a seat on Virgin Australia’s board, Borghetti said in the interview. Representatives for Air New Zealand and Singapore Air declined to comment on the deal.

Major shareholders will see their shareholdings diluted. Air New Zealand’s stake will fall to 22.5 percent from 25.9 percent; Singapore Air’s will decline to 20.1 percent from 23.1 percent; and Etihad’s will decrease to 21.8 percent from 25.1 percent, a Virgin spokeswoman said. Virgin Group goes to 8.7 percent from 10 percent.

CHINA: Hainan Airlines, SilkAir, Who’s Flying Where?

Hainan Airlines adds double Laos link
Where? Haikou (China) to Vientiane and Luang Prabang (Laos)
When? Three times a week (twice to Vientiane, once to Luang Prabang), effective immediately
Who? Hainan Airlines
Why? Rising Chinese tourism and investment in Laos
Anything else? These are the first direct links between Laos and Hainan, China’s island province

Across the Sea of Japan
Where? Vladivostok (Russia) to Osaka Kansai (Japan)
When? Twice a week (reduced to once a week in May-June)
Who? S7 Airlines
Why? Reflects improved relations between Russia and Japan
Anything else? Vladivostok is only 1,020km from Osaka, but 9,100km from Moscow

SilkAir to make debut in Sri Lanka
Where? Singapore to Colombo (Sri Lanka)
When? Three times a week from April 2017
Who? SilkAir
Why? Subsidiary continues to take over more of Singapore Airlines’ regional services
Anything else? SIA will continue to operate daily flights on the route

Russian city gets international link
Where? Petropavlovsk-Kamchatsky, pictured (Russia) to Tokyo Narita (Japan)
When? Twice a week in summer 2017
Who? Yakutia Airlines
Why? Long-awaited international connection for city located north of Japan
Anything else? Located on the remote Kamchatka Peninsula, Petropavlovsk-Kamchatsky has no road links to the rest of the world

CHINA: Chinese Tourists Demand Free Upgrade,Assault Crew, Flight Delayed 2 Hours

Two economy passengers on a domestic Chinese flight who demanded upgrades to first class, injured four cabin attendants and a security officer and delayed the plane for nearly two hours are being investigated by police, Hainan Airlines said in a statement on Tuesday.

The airline said it would take legal action against the two men, who were not named, and apply to the Civil Aviation Administration to have them added to a national black list of disgraced passengers who are banned from air travel in future.

The two men holding economy class tickets occupied seats in the first class cabin after boarding flight HU7041 from Taiyuan, in northern Shanxi province to the southern metropolis of Chongqing on Sunday.

They refused to leave the seats or pay for the price differences before taking off.

They argued with the cabin crew and then hit them when they were asked to return to their own seats, the statement said.

The pilot stopped the plane as it was taxiing to the runway and returned to the terminal to allow police to board the plane and take the two men away, causing the flight to be delayed for two hours.

Hainan Airlines strongly condemned the behaviour in a statement: “We call for more understanding and respect for people in service jobs and for civilised behaviour in the cabin.”

CHINA: Police Investigating Assault At Nanjing’s International Airport

An angry passenger shoved a member of staff at an airline to the ground when she was told her flight was cancelled after waiting for four hours at an airport in eastern China, a newspaper reported.

The assault happened on Wednesday night at Nanjing Lukou International Airport.

The passenger, a mother who was with two children, lost her temper when her Hainan Airlines flight to Harbin was cancelled because of bad weather, according to the article.

A photograph posted online showed a woman member of staff lying on the floor behind a counter as a crowd of people look on.

The woman fell during a quarrel with the passenger, slightly injuring one of her knees, the airport confirmed over the weekend.

The staff member was sent to hospital.

The airport said police had verified the identity of the attacker and would “take measures by law”.

Nanjing has been hit by a series of flight cancellations because of storms in the area.

China Eastern Airlines

About China Eastern Airlines
China Eastern Airlines is majority owned by the Chinese government, and is ranked as a 3-Star Airline. The international hub for China Eastern Airlines is Shanghai Pudong Airport and Shanghai Hongqiao Airport for domestic flights. China Eastern Airlines is a member of SkyTeam Alliance.

China Eastern Airlines fleet
China Eastern Airlines has a large aircraft fleet, and long haul international flights are normally operated by their newer Boeing 777-300ER aircraft and Airbus A330 aircraft.

Shanghai Pudong Airport
The main airport used by the airline is Shanghai Pudong International Airport. The Shanghai Maglev Train links Pudong International Airport with Longyang Road Metro Station, from where downtown connections can be made. International and domestic flights operate from Pudong International Airport, although the main China Eastern Airlines base for domestic flights is Shanghai Hongqiao Airport, which is much close to downtown Shanghai. Shanghai Hongqiao Airport is next to Shanghai Hongqiao Railway Station, a major train hub served by the Beijing–Shanghai High-Speed Railway.

Shanghai Pudong International Airport has two main terminals, Terminal 1 and the newer Terminal 2 – walking time between the terminals is about 15 minutes. China Eastern Airlines operates from Terminal 1, as does its subsidiary, locally based airline, Shanghai Airlines.

China Eastern Airlines ground service
Check in service is at a reasonable standard in Shanghai Pudong Airport, and there are many self-serve check-in facilities. Waiting times for check-in at Shanghai Hongqiao tend to be slowest for peak period domestic flights. If you need English language assistance at check-in, many staff have adequate language skills or they can call a supervisor.

China Eastern Airlines domestic First class lounge at Shanghai Hongqiao Airport is quite spacious, but at peak departure times you may find it hard to locate a free seat space. Lounge catering is supplied by an outside, Western hotel chain and the standards are quite good. WiFi is available, although speeds mirror many Chinese airport standards by being slow.

The international First and Business Class lounges at Shanghai Pudong Airport are quite limited, and will be replaced in the coming years with a new facility. They are made up of several lounge choices, each being quite small and lacking in facilities that you would expect at a major global hub. Not the place to relax for long periods, and don’t expect much in the way of business facilities or in-lounge catering options.

Onboard China Eastern Airlines
On international flights, China Eastern Airlines offers First class, Business and Economy class on some aircraft, whilst others will have just a Business Class and Economy Class cabin.

First Class
The new Boeing 777-300ER aircraft provides seat pod style flat bed seats, in a 1x2x1 layout. The seats are spacious, offer good privacy and there is a large IFE screen. A nice duvet and pillow is supplied. The onboard catering is ranked 3 to 4-Star standards, and normally the Chinese menu is of a better standard than the Western meal options. A good choice of wines are available. An amenity kit is provided, slippers and nice pyjamas (it is advisable to select the largest size for comfort). Cabin staff service can be good, but there are variations and a lack in service consistency. Most cabin staff have some understanding of English, and staff language skills are improving year on year. The language skills are based around a standard set of phrases, and you may find that staff will not understand if you go off-script. The choice of reading materials is limited – you get English language Chinese newspapers offered, and maybe Time of Newsweek, but little other choices are available. The IFE system is reasonable on newer Boeing 777-300ER aircraft, and a choice of Western movies is offered, as are Western TV programmes. However, don’t expect much in the way of new releases and many movies are quite old.

Business Class
The newer Boeing 777-300ER aircraft offer nice flat bed seat pods, arranged in a 1x2x1 layout. There are older angled-flat seats on Airbus A330 aircraft. A nice duvet and pillow are provided. Pyjamas are not provided, but you receive an amenity kit and slippers. The onboard catering is quite similar to First Class (apart from some presentation format difference), and you will probably find that Chinese menu standards are better than Western options. Cabin staff service is efficient through the meal services, and same comments apply to language skills. The IFE system is patchy, and you may find that the responsiveness is very slow. Choice of reading materials is limited – you will get English language Chinese newspapers offered, and maybe Time of Newsweek, but little other choice. The IFE system is reasonable on newer Boeing 777-300ER aircraft, and a choice of Western movies is offered, as are Western TV programmes. However, don’t expect much in the way of new releases and many movies are quite old.

Economy Class
China Eastern Airlines Economy class seats provide a reasonable comfort level, with an average seat pitch and legroom. For the Cabin Seat Layout plans, we suggest you refer to our Airline Seat Plans guide where you can view China Eastern Airlines aircraft cabin layouts. A blanket and pillow are provided, both at a 3-Star quality level. The Economy class onboard catering is ranked at 3-Star standard, with a choice of Chinese or Western meal options. Quantity of food supplied is okay, but don’t expect culinary delights on most routes. Chinese tea is served with the meal and you might have to repeatedly request from staff if you want to get a beer or wine served – and these are often served warm and not chilled. The cabin staff tend to be younger in this cabin (compared to First or Business) and most of them are enthusiastic and offer a pleasant demeanour. They are trained with standard English language phrases, and you may find that some questions you ask are met by puzzlement – persevere and they will normally get an English speaking member of staff to help. The IFE system is reasonable on newer Boeing 777-300ER aircraft, and a choice of Western movies is offered, as are Western TV programmes. However, don’t expect much in the way of new releases and many movies are quite old.

Domestic Flights
The majority of China Eastern Airlines domestic flights are operated by narrowbody Airbus A320/321 and Boeing 737 aircraft types, although some busier routes may use Airbus A330 aircraft. The onboard narrowbody product comprises First / Business Class seats configured 2×2, and standard Economy 3×3 seating. A proportion of these China Eastern aircraft are quite dated and worn inside the cabin, with well-used seats and cabin décor. In contrast to Air China, China Southern and Hainan Airlines, many of these domestic China Eastern Airlines aircraft seem rather tatty in appearance and presentation. A meal or snack is normally served in both cabins, subject to flight duration – shorter 60-90 mins flights and you are lucky if you receive even a beverage in First Class.

Cultural Differences
It is worth remembering that there are clear cultural differences amongst many Chinese travellers, and some of these may be disconcerting to western customers. This is an area that the Chinese government has been trying to address in recent years, and in 2013 the China National Tourism Administration published a 64-page Guidebook for Civilized Tourism (encouraging better manners). As far as air travel is concerned, you are likely to notice that queuing is often disorderly and when for example flight boarding is announced, there can often be a rapid stampede of travellers pushing and shoving to get through the gate quickly. Loud talking (almost shouting) is another trait you might find disconcerting both on the ground and onboard flights. Spitting remains an issue despite educational promotions to stop this. Despite airline’s best efforts to keep passengers seated after landing, you may also find a number of passengers standing up to retrieve luggage whilst still taxiing. We guess that bit by bit such practices will gradually improve in coming years, but don’t forget there are 1.4 billion potential Chinese travellers.

VERDICT
China Eastern Airlines is playing catch-up from a quality perspective when compared to China Southern Airlines and Air China (as one of the 3 Government owned airlines), and their new fleet additions on long haul routes offer a considerable improvement. You would not choose a Chinese airline if you must have standard western food and amenities during a flight, and it is also important that you don’t expect every member of staff to be able to chat to you in English (or other language). Staff are generally well trained and provide service in quite a regimented and disciplined manner, and remember, they often have to deal with very demanding Chinese customers. China Eastern Airlines is a good choice if you are planning a trip to China and want to fly into Shanghai, although their standards are currently not meeting the 4-Star quality of China Southern Airlines or the top 5-Star quality of Hainan Airlines.

Flying Hainan Airlines

About Hainan Airlines
Hainan Airlines is the largest privately owned air transport company and fourth largest airline in China. It is the only 5-Star Airline in China. Whilst Hainan Airlines original base was Haikou Airport on Hainan Island in Southern China, they now operate most international routes to North America and Europe from Beijing Capital International Airport, as well as from some smaller cities such as Xi’an.

Hainan Airlines fleet
Hainan Airlines has a fleet of over 130 aircraft, and long haul international flights are operated by Boeing 787 and Airbus A330 aircraft. It also operates over 100 Boeing 737-800 mostly deployed on domestic routes.

Beijing Capital Airport
The main airport used by Hainan Airlines is Beijing Capital International Airport. All Hainan Airlines domestic flights operate from their own terminal here (Terminal 1), which offers a convenient and compact terminal and short check-in times. International flights operate from Terminal 2 (connected by walkway to Terminal 1).

If you’re heading to downtown Beijing from the airport, you can either take a taxi or use the rail link. By taxi, the journey at quiet times is approx. 30 mins, but beware that Beijing traffic can be extremely busy and this journey time can double at peak periods. The rail link is efficient and comfortable, and takes about 20 minutes.

Hainan Airlines ground service
Check in service for Terminal 1 is at an excellent standard in Beijing Airport (served by Hainan Airlines own staff), and there are also many self-serve check-in facilities. International flight check in takes place at Terminal 2.

Hainan Airlines domestic First class lounge in Terminal 1 Beijing Airport is spacious, but at peak departure times it can be very busy. A new lounge area in Terminal 1 is being added by Hainan Airlines in 2015/16. Lounge catering in the lounge is good, with a “live” hot food counter serving freshly prepared meals. WiFi is available, although these WiFi speeds mirror many Chinese airport standards and are slow.

In Terminal 2, Hainan Airlines use a third-party international Business Class lounge, but this will be replaced in late 2015 by a new, state of the art Hainan Airlines lounge to be opened.

Onboard Hainan Airlines
On international flights, Hainan Airlines a Business Class and Economy class, both rated to deliver 5-Star quality standards.

Business Class
Hainan Airlines Boeing 787 and Airbus A330 aircraft offer nice flat bed seats, arranged in a 2x2x2 layout. A very nice duvet and pillows are provided, and cabin staff conduct a high standard of turndown service for customers. Pyjamas are provided, and you receive a Bulgari amenity kit and slippers, with washrooms also equipped with Bulgari products. The onboard catering is ranked at a 5-Star standard, and is similar to many airline’s First Class standards.

A full table service style is applied, and Hainan Airlines is the only Chinese airline where the quality levels for both Chinese and Western menu options are evenly matched, and of a high standard. Cabin staff service is a strong feature for Hainan Airlines, with courteous and friendly staff delivering an efficient and most attentive 5-Star service, with better language skills than other Chinese airlines.

Choice of reading materials is normally very good, with a choice of English language Chinese newspapers, IHT, FT etc being offered, and a wide selection of English language magazines for male and female customers. The IFE programming is satisfactory, with a wide choice of western movies and western TV programmes provided. Don’t expect too much for newest Hollywood releases but total choice is better than other Chinese airlines.

Economy Class
Hainan Airlines Economy class seats provide a reasonable standard of comfort, with an average seat pitch and legroom. For the Cabin Seat Layout plans, we suggest you refer to our Airline Seat Plans guide where you can view Hainan Airlines aircraft cabin layouts. A blanket and pillow are provided, both of a 4-Star quality level.

Economy class onboard catering is well ranked, with a choice of Chinese or Western meal options, the quality levels for both menu options being evenly matched, and of a high standard. The cabin staff are enthusiastic and have a pleasant and courteous demeanour, delivering an efficient and most attentive 5-Star service. They are well trained with English language comprehension and phrases, although of course some questions may not be fully understood.

The IFE programming is satisfactory, with a wide choice of western movies and western TV programmes provided. Don’t expect too much for newest Hollywood releases but total choice is better than other Chinese airlines.

Domestic Flights
The majority of Hainan Airlines domestic flights are operated by narrowbody Boeing 737 aircraft types, although some busier routes may use Boeing 787 and Airbus A330 aircraft. The onboard narrowbody product is divided by First Class seats configured 2×2, and standard Economy 3×3 seating. These narrowbody aircraft are well presented with clean and tidy cabin interiors and décor. A meal or snack is normally served in both First and Economy class, subject to flight duration.

Cultural Differences
It is worth remembering that there are cultural differences amongst many Chinese travellers, and some of these may be disconcerting to western customers. This is an area the Chinese government has been trying to address in recent years, and in 2013 the China National Tourism Administration published a 64-page Guidebook for Civilized Tourism (encouraging better manners).

As far as air travel is concerned, you may notice that queuing is often disorderly and when flight boarding is announced, there can be a rapid stampede of travellers pushing and shoving to get through the gate quickly. Loud talking (almost shouting) is another trait you might find disconcerting both on the ground and onboard flights. Spitting remains an issue despite educational promotions to stop this.

Despite each airline’s best efforts to keep passengers seated after landing, you may find a number of passengers standing up to retrieve luggage whilst still taxiing. We guess that bit by bit such practices will improve in coming years, but don’t forget there are 1.4 billion potential Chinese travellers.

VERDICT
Offering a very high Quality service, Hainan Airlines is a great choice of airline if they serve your route into China, and they deserve their 5-Star Airline rating as a clear stand-out feature. The airline has a true focus and dedication to delivering top quality service, and this is well demonstrated by efficient and consistent standards of 5-Star service that Hainan Airlines staff deliver.

ISRAEL: Hainan Airlines Launches Direct Flights To Israel

Hainan Airlines is already placing a priority on its Tel Aviv-Beijing line; an airline representative told Ynet that 'the Israeli market is very important to us, and we are not afraid of the competition from El Al'.

Hainan Airlines is coming to Israel, and is selling tickets for its first four round-trip flights to Beijing for $91. But don’t pick up the phone just yet, as after taxes and fuel surcharges, the price rises to $741. This is still cheaper than the prices offered by El Al, the only other airline that flies directly from Israel to Beijing.

Hainan is one of only seven airlines to be awarded a prestigious five star rating by rating company Skytrax, putting it alongside Cathay Pacific, Singapore Airlines, and Asiana airlines.

Israel is a very important destination
The airline thoroughly researched the market in order to determine the route's feasability and the expectations and needs of Israeli travelers before deciding to open the Tel Aviv-Beijing line. Hainan also sent over three hundred visa requests to the Israeli Interior Ministry for pilots, and hundreds more for flight attendants.

"We want to be ready with the best aircrews for our flights to Israel,| said Li Liang, the general manager of the Hainan offices in Israel. "Today Israel is a very important destination for us."

Flights from Israel to Beijing are to take place every Sunday, Tuesday, and Thursday. The planes will take off from Ben Gurion International Airport at 2:00pm IST, and land in Beijing at 5:00am CST the next day. These days and times were chosen in order to enable passengers flying to Beijing the option of catching connecting flights to other destinations within China.

Meanwhile, return flights will take off from Beijing at 2:00am CST, and land in Israel at 8:00am IST.

The planes in use will be Airbus A330-200 models, featuring 36 seats in business class and 186 seats in economy. In business class, the seats have 29 inches of legroom, and unfold into beds. In economy, the seats have over a foot of legroom, and recline up to 105 degrees.

Every passenger is to have a personal entertainment system with over 100 movies on demand, British and American television shows, and different in-flight videogames.

Regarding to competition from El Al, which flies to China on Boeing 767s, Liang says that Hainan doesn't compare its service to those of other companies, or compare itself to other companies that fly to destinations in Europe. "Our judges," he says, "will be the Israeli passengers."

According to Liang, Hainan is presenting clients with ultra-modern planes and the highest quality of service. "We have carefully checked the needs of the Israeli customer, and we are not afraid of competition," he says.

Liang said Hainan is "convinced that this new route will be successful, as there has been immense growth in the number of tourists and business people travelling from Israel to China and China to Israel. The relationship between the two countries is developing and progressing all the time."