Focus Asia News, February 2007.

This edition's table of content:

Dear Partners,

We are thrilled to submit to you our very first monthly newsletter. We hope you enjoy reading it and that the information provided is useful to you and your clients. We’ll strive always to present the most valuable articles on destinations of interest, newly created tours, current promotions and other industry news for Vietnam, Cambodia, Myanmar and Laos in a concise format. Our goal is to use our vast resources to keep you updated with what is happening in this part of the world.

Currently, we are pleased to announce the completion of our new web site (www.focus-asia.travel) that launched on January 31, 2007. The public version is available in English; the German or Russian versions are due to be finished before April 1. Please visit us and share your feedback about our new site. Your opinion is important to us.

Our business across the region is going extremely well; total number of travellers that we are caring for should double by the end of this season. Our special thanks go to the Russian-speaking markets and our great sales offices in Moscow, St Petersburg and Kiev. Our headquarters in Saigon has hired a new Director of Sales & Marketing and an executive assistant. We are currently hiring and training new staff members for the Saigon reservation department.

While the number of visitors to Cambodia increased by 20% in 2006, current results in the Vietnamese tourism market are growing at a slower pace then expected. Experts believe this is due mainly to the lack of effective international public campaigns promoting the destination across the main outbound markets. Nonetheless, this trend is obviously changing very fast with the booming economy that reaches the 10% growth mark again this year and the stunning official accession of Vietnam into the World Trade Organization on January 7, 2007.

Vietnam: Destination of the Month

Sapa

Vietnam, a country rich in diverse and picturesque sites, is always full of surprises. During our last journey towards the Vietnamese peaks, we discovered the mid-altitude old French hill station of Sapa. This town rests at the foot of Mount Fon Sipa, which culminates at 3143 meters (10,310 feet). The destination remains a true gem of Vietnamese authenticity and should definitely be seen soon before this wonderfully pristine region is spoilt.

It is a unique place, where the fresh mountain air will open your mind up to new horizons. It offers a mystical experience in a remarkable environment. It is in these secluded valleys of northern Vietnam that the ethnic minorities of Dao (pronounced Zao) and H’mong continue to live. These two strong ethnic groups have been able to preserve their cultural authenticity throughout the centuries.

These minorities live in scattered villages, widespread in the numerous small valleys that surround the region. Its people still wear the traditional attire that characterizes their culture, and never procreate with outside ethnic group members, therefore ensuring the continuity of their ethnicity. They also distinguish between essentialism versus superficiality, which allows them to nonchalantly live a very simple life, which might surprise most travelers.

The Dao and H’mong people mostly live off agriculture, but unfortunately, the yearly harvesting of rice and corn yields a low quantity of food. The required manual labor is very tenuous in the numerous terraced rice fields, which have been built from generation to generation. They sprawl out as far as the eye can see; creating a spectacle that is very particular to this region.

With their strikingly deep and dark eyes, the Dao and H’mong people exude sincerity and kindness. These are people with wholesome faces and joyous smiles. Walking the long trails that traverse this region on the way to the Chinese Yuan region can be a memorable experience. Whether you are a nature lover, an adventure seeker, or simply want to get acquainted with traditional and authentic minorities, visiting this region and its people will certainly create a lasting memory.

Vietnam: News Information

Tet Festival: The Lunar New Year will take place from 16 to 19 February 2007. Tet Festival is a time of great festivities and family celebrations throughout Vietnam, and most businesses will be closed during this period.

Reminder about Visas: Please apply early for visas during TET. If you have clients travelling to Vietnam between end January to end February who require visa services, please remember that the Immigration Department will be closed for approximately a week, tentatively from 15 - 22 February 2007, and we will therefore not be able to provide visa approval numbers or invitation letters at all during that period. For the weeks immediately before and after this period, there are frequently delays in normal visa services and urgent visa approvals may not be available, as officials process the backlog of requests.

Reminder about Flights: During the period surrounding the TET Festival, Vietnam Airlines will apply special ticketing policies. For all sectors confirmed for the period 7 February - 4 March 2007, tickets must be issued within 5 days of confirmation, or the booking will be cancelled. Once the tickets are issued, cancellation charges will apply per the airline's standard policies.

Vietnam: Product Information

Vietnam Airlines has changed its cancellation or rerouting policy. Note that all domestic air tickets cannot be rerouted or changed for free as before. The charges currently applied for the rerouting fee is 100,000VND per ticket, and the refunding fee is equals to 10% of the ticket value.

A new five-star tourist express train on the Saigon – Nha Trang railway has just kicked off. The company has built ten carriages equipped with five-star standard facilities. The train includes six carriages for passengers totaling 332 seats, a restaurant carriage, and a car for luggage (even cars for tourists). The train runs twice a day, starting from Ho Chi Minh City at 6h15am and arrives in Nha Trang at 13h33pm. The return leaves Nha Trang at 14h55pm and reaches Saigon at 23h18. There are three classes of seats from standard to deluxe. This is the first time the Vietnam Railway General Department has permitted a private company to open the rail tourist service.

Victoria Express Train has a new schedule and six night train departures per week (Saturday is excluded). The Hanoi to Lao Cai train departs at 21h55 and arrives at 6h15 the next morning. The Lao Cai to Hanoi train departs at 21h05 and arrives at 5h10 the next morning.

The Evason Brand of Six Senses Resorts & Spas has opened a very unique addition to the line up of properties that are Redefining Experiences. Comprising nineteen French colonial-style villas, most of which were built early in the 20th century, the resort overlooks the picturesque Vietnam highland city of Dalat, and creates an experience unlike anything to be found elsewhere in Asia.

Every villa is architecturally different, most often reflecting the French locale from which the individual settler originated. Initially, 5 villas comprising 19 luxurious suites, studios and rooms will be introduced. Each villa has its own private dining and living room area and also has a dedicated butler and housekeeper to service guests during their stay. With the completion of phase two in April 2007, a total 40 accommodations will be completed, and with phase three on line at the beginning of June 2007, Evason Ana Mandara Villas at Dalat will comprise 70 accommodations.

Sofitel Metropole Hanoi launched the hotel’s 157-room ‘Opera Wing’, the latest in its ongoing renovation to equip the iconic hotel with the latest 21st century technology and amenities.

La Veranda Grand Mercure Resort & Spa announced that the Superior Garden and Superiors Ocean room categories will be renamed as standard room and superior room. Deluxe Villa and La Veranda Suite do keep the same appellation as of February 1st 2007.

Romana Resort & Spa is introducing a new Oceania Spa which is due to open in mid-February 2007.

Dong An Beach Resort in Hoi An has been renamed as River Beach Resort.

Hotel Saigon Majestic in HCMC has changed its room categories as mentioned in the table below. The hotel confirmed also its revised 50% price increase for all rooms to be applied on March 1st, 2007.

Hoa Lu Hotel in Ninh Binh province has upgraded their Standard Rooms to Superior Rooms.

Chateau Restaurant will be closed for Tet holidays from 15 - 19 February 2007 and reopened on 20 February 2007.

Duxton Hotel Saigon is renovating its facilities starting February 1, 2007. Renovations include works for Zanadu Health Club on Level 2 and this will take approximately two months. In April, restoration work on The Grill starts. At the same time, the function rooms on Level 1 will be closed for overhaul till end of May.

Be advised that the following services cannot be arranged during Tet Festival.

Vietnam: Specials Deals

Sheraton Saigon Hotel is offering for 3 nights stay in Premier Deluxe Pool Room on weekends (arrival on Thursday, Friday, Saturday only) inclusive of daily breakfast for two, 1-hour spa treatment per person and one set dinner for two in the signature restaurant. Applicable for new bookings and conditions apply. This offer is valid from the 4th of January to the 30th of September 2007.

Victoria Hoi An Beach Resort & Spa is offering a Long Stay bonus. Stay a minimum of seven consecutive nights and get one additional night with breakfast free. This offer is valid from now until 2 May 2007 and is applicable for new booking only. Blackout period and conditions apply.

Sofitel Metropole Hanoi is offering guests special deals for Têt festivities from the 16 to 20 February 2007 (both mentioned dates are included). The special include a complimentary Hanoi's Street buffet lunch with a soft drink at Spices Garden restaurant. The offer is applicable for new bookings only made during the period from 19 January 2007 to 10 February 2007 for stays from 16 to 20 February 2007. Minimum length of stay is two consecutive nights.

The Golden Sand Resort in Hoi An is offering superior Room upgrade to Deluxe Room with Ocean View if you stay four consecutive nights or more. This offer is valid for new FIT bookings and not GIT or Series.

The Golden Sand Resort in Hoi An is offering honeymooners interesting special 2-day package deals. Please contact us for further information.

Vietnam: New Products and Properties

New Mekong Delta Cruise: The Mien Tay Sampan is designed according to the traditional sampans. The 20-metre long and 4-metre wide vessel offers five cabins with one well ventilated compartment which could be used as a dining room as well as a bedroom with couchettes available for a group of 2 to 16 people. Cruise facilities include 1 kitchen, 3 restrooms with showers and 2 decks. Mien Tay Sampan cruises are operated on a charter basis with a minimum requirement of 2 passenger under 5 programmes mentioned in the table below.

Saigon - Ninh Chu Hotel is the latest 4-star property in Phan Rang of Ninh Thuan province. This facility offers 102 rooms comprising of 2 Suites, 13 Deluxe, 17 Superior and 70 Standard - all with sea views. Hotel facilities include 1 restaurant, 2 bars, fitness centre, swimming pool, massage service, souvenir shop and banquet & conference facilities.

Aonasis Beach Resort in the province of Ba Ria, near Vung Tau re-opened on January 23rd of 2007. This resort has been ranked year after year as one of the best resorts in South Vietnam.

The Princess d’Annam Resort & Spa located in Phan Thiet is officially due to open on the first of July 2007.

Sunny Beach Resort is a new resort in Mui Ne. Located next but one to the Coco Beach; it opened in December 2006 and has a total area of 16,000 sq. meters. The hotel has currently 54 rooms (10 Bungalow, 8 Superior & 34 Standard) and plans to build 31 more rooms in the near future.

Vietnam: Projects under planning, construction or renovation

Big golf hotel complexes planned in Hanoi and Ho Chi Minh City. Long Bien Investment Corp. will develop two golf course, hotel and apartment complexes in HCM City and Hanoi to cater to the rising number of golfers and international tourists. Tran Dinh Long, Long Bien general director, said the company will soon start work after the Lunar New Year (Tet) on one complex over 163 hectares in HCM City’s Tan Binh District and another on 117 hectares in Hanoi’s Gia Lam District.

The complex in Tan Binh will include a 36-hole golf course, a 200-room hotel of four- to five-star standards, 500 luxury apartments and 400 villas. The project in Gia Lam District will include a 27-hole golf course, a hotel of 200 rooms, a training center and other facilities for both local and international golfers and travelers.

The first 18 holes of each of the golf courses will be opened in 2008. If every thing goes smoothly, about VND2 trillion (US$125 million) will be invested in the two projects. There are ten golf courses operating in Vietnam at present, but demand for playing golf is much higher. Over the next two years, the country will have about 25 golf courses.

Cambodia News

Cambodia: News Information

Number of visitors to Cambodia increased by 20% in 2006: According to the Ministry of Tourism of Cambodia during 2006 about 1.7 million tourists visited Cambodia. In 2005 1.4 million tourists came to Cambodia. Most visitors are coming from Asian countries with South Koreans as the number one visitors (nearly 250,000 in 2006). In 2007 the government expects a further increase of 20%. The main tourism destination is the Angkor complex in Siem Reap. Other destinations are Phnom Penh, Sihanoukville, Ratanakiri and Steung Treng. On 13 December 2006 Cambodian deputy prime minister announced that Cambodia expects revenue of US$1.3 billion by the end of 2006, compared with over US$1 billion in 2005. Tourism is Cambodia’s largest industry after the garment sector accounting for 30 percent of the country’s gross domestic product.

Bangkok Airways will retain Bangkok – Siem Reap route monopoly until 2009: The Ministry of Tourism in early October rejected a petition from the Cambodian Hotel Association and the Cambodian Association of Travel Agents to terminate the monopoly. A return (round-trip) ticket from Bangkok to Siem Reap is US$280, compared with the ticket over a similar distance from Bangkok to Phnom Penh by Bangkok Airways for US$150. Budget airlines are offering Bangkok – Phnom Penh for around US$55.

E-ticket traffic starts in Cambodia. Abacus International has expanded its e-ticketing services to Cambodia’s travel agencies. Bangkok Airways has announced that it is using the new air ticket system. In the contrast with a traditional airline ticket printed on a piece of special paper, an e-ticket has data stored in Abacus’s information system. Thai Airways and Asia Air are also offering e-tickets.

Cambodia: Product Information

Raffles Hotel Le Royal has opened a Dinner Theatre featuring Cambodian cultural performances. Maximum seating capacity will be 35 up to 40 guests and this scheduled performance will end in April 2007. The charge per person is US$30 net, maximum seating capacity will be 35 to 40 people and this scheduled performance will end in April 2007. The performance takes place at the Apsara Terrace.

Cambodia: Special Deals

Sofitel Royal Angkor Golf & Spa Resort offers a special 3-night spa package. Black out period and conditions apply.

Cambodia: New products Cambodia

The first international golf course in Siem Reap at a cost of US$10 million opened at the end of August 2006. Phokeethra Country Club, about 20 km away from Siem Reap, employs more than 300 people and is owned by Sofitel Royal Angkor Golf & Spa Resort Hotel. It covers more than 100 hectares with 18 holes over 6,177 yards, with lakes, canals and greens. Another similar golf resort for US$15 million is now under construction. Angkor Golf Course with 160 hectares is due to be opened in June 2007.

New airline: Angkor Airways. In September a new airline – Angkor Airways (airlines code is G6) - has started flights from Phnom Penh to Siem Reap, from Phnom Penh and Siem Reap to Chengdu in Southern China and from Phnom Penh and Siem Reap to Taipei. Canadian, Hong Kong, Malaysian and Cambodian investors have formed the new company (www.angkorairways.com). Over the last 10 years four Cambodia based airlines - Royal Air Cambodge, Mekong Airways, First Cambodia and Royal Phnom Penh Airways - went out of business. Cambodia still has no national carrier as none of Angkor Airways’ shareholders are Cambodian nationals.

Cambodia: New tours

Bird watching tours in collaboration with Wildlife Conservation Society (WCS). Focus Asia - Cambodia is promoting wildlife tourism to a number of sites in remote areas of Cambodia (see www.mekong-dolphin.com). WCS surveys have revealed the continued existence of the mythical Giant Ibis Pseudibis gigantea in addition to large numbers of globally endangered birds and mammals at sites in northern Cambodia. The Ibises live in a complex relationship with local rural farming communities, and are threatened by hunting and unsustainable fishing. WCS has established a partnership with these communities, whereby income from tourism is used to fund village development. In exchange, the villagers agree to abide by an agreement not to collect or hunt the bird species, especially during breeding seasons, and improve local land management (www.wcs.org/international/Asia/Cambodia/Cambodia_Eco-tourism).

Cambodia: New Properties on Spotlight

Traditional lodging at Mekong riverbank: Kratie is home of Cambodia’s few remaining Irrawaddy dolphins. The city offers the only tourism accommodation right at the riverbank of the majestic Mekong River. Roka Kandal guesthouse (www.mekong-dolphin.com) has two traditional style wooden houses with balconies over the river. Behind is a unique place - the only existing and well restored Khmer pagoda Roka Kandal of the early 19th century, which serves as a small wicker-work handicraft centre of the Cambodian Craft Cooperation. Both houses offer Western style bathrooms and air-conditioning rooms.

Cambodia: Projects under construction and renovation

Bokor Resort. Cambodian petroleum company Sokimex will make a US$100 million first phase investment for the construction of a 300-room hotel, an eight-hole golf course, 100 luxury villas and a new mountain road. French colonials originally developed Bokor hill resort in the early 1920s as a retreat from the tropical climate. The grand Bokor Palace Hotel & Casino, a post office and a church were abandoned in the late 1970s. Bokor mountain is home of rare species including tigers and leopards. Focus Asia - Cambodia is organizing bird watching tours into the area.

Upgrading of airport Sihanoukville. From 2006-2009 Muhibbah Engineering will invest US$30 million in upgrading the Sihanoukville international airport. Since 1995 Muhibbah, through a joint venture with Société Concessionnaire des Aéroports get Sihanoukville, has held the concession for the airports in Phnom Penh, Siem Reap and Sihanoukville. The Cambodian government has recently extended these concessions by 20 years to 2040.

New US$ 70 million tourism resort in Sihanoukville. Authorities have cleared the way for a US$70 million dollar tourism resort by moving out 71 huts belonging to food vendors and fishermen on Ochheuteal beach on June 27th 2006. Sokimex petroleum company President Sok Kong leased 43 hectares of the beach from the government and spent US$70 million to build a 500-room hotel, a nine-hole golf course and a 1,000-person conference room. Sok Kong is already owner of the first and only deluxe class hotel Sokha Beach in Sihanoukville.

Russian US$300 million investment in Sihanoukville. Last October Russian Koh Puos Investment Group has signed a US$300 million, 99-year investment agreement with the Cambodian government to develop Sihanoukville’s Koh Puos Island and Hawaii Beach. The company wants to build a bridge across the water, hotels, guesthouses and recreational amenities including gardens and water-skiing facilities.