A NEW study by management consulting firm Oliver Wyman seeks to dispel common misconceptions about Chinese outbound travellers, including views they are more trouble than they are worth, or group travel is being replaced by FIT.

Based on a survey of 1,750 Chinese people who had travelled abroad in the past year, it hopes the findings will help global destinations sharpen their appeal to the changing market.

And the common myths:

Myth 1: “They go abroad only to shop”
While nearly all travellers shopped during their trip, less than 15 pe rcent of Chinese travellers it surveyed cited shopping as the main reason for their trip, in contrast to 63 per cent who specified sightseeing as their top motivation.

In Hong Kong, where slow growth in Chinese travellers and their spending has seen retail sales fall 12.5 per cent in the first quarter of 2016 and a slump in 2015, the city will need to become less dependent on shopping by mainland visitors and encourage spending on other activities, pointed out Hunter Williams, Oliver Wyman partner and author of the report.

Myth 2: “They spend indiscriminately”

Chinese travellers relatively spend large sums while abroad, on average, US$3,000 per person, roughly the equivalent of a month’s household income. It is also true that they spend a lot on shopping – about US$1,200 – which may have helped to fuel the misconception that they spend indiscriminately. However, only around half of the spending is on themselves. More than 32 per cent is to purchase gifts for others, and 19 per cent is for resale back home. “Chinese travellers have sophisticated needs, so retailers need a segmented approach that emphasises unique value – it’s no longer enough to offer a blanket approach,” said the report.

Myth 3: “They are always in groups” or “Independent travellers are quickly replacing groups”

Both the number of tour group travellers and independent travellers are on the rise, showing both individuals and groups will continue to be important segments for some time to come.

Independent travellers are not replacing group travellers, but are complementing them. For example, Hong Kong and Macau rank close to the top for the percentage of independent trips, while Taiwan ranks close to the bottom. At the same time, over the past few years group travellers have actually accounted for a larger share of all travellers, dispelling the misconception that groups are gradually being replaced by individual travel. However, Chinese travellers surveyed considered tour operators to be the single least useful source of information, showing tour operator relationships are no longer enough.

Myth 4: “Chinese travellers are more trouble than they are worth”

As a result of cultural misunderstandings, Chinese tourists can often be misjudged. For example, there is no tipping culture in China and it is often socially acceptable to eat food on public transport. Explaining service charges upfront and the proper usage of facilities can reduce miscommunication. Similarly, rules, and penalties for breaking them (such as cleaning fees for smoking in non-smoking rooms), should be clearly communicated. Open two-way communication is the surest way to avoid misunderstanding.

“Today there is no such thing as the archetypal Chinese traveller as this group is complex and multi-faceted,” said Williams. “If consumer-facing businesses make broad generalisations and buy into the misconceptions, they will miss key opportunities. Businesses need a cohesive Chinese traveller strategy, where the realities of each region and destination must be considered separately.”

Vandy: halal certified food options integral to growth

SPECIALIST Muslim tour operators in Cambodia have welcomed government plans to finalise a draft law on halal food certification.

Minister of commerce Pan Sorasak said the finishing touches were now being added before the law is presented to the Council of Ministers for approval.

The move hopes to attract a steadily growing number of visitors from the Middle East. Although currently low, latest figures from the Ministry of Tourism show a 24.5 per cent hike to 7,144 travellers in 1Q2016 compared to the same period last year.

Ho Vandy, co-chairman of a government-private sector working group on tourism, said providing halal certified food was essential for growth of the market, since few restaurants cater to Muslim tourists.

Hassan Mao, manager of Cambodian Muslim Tour, said many of the current halal offerings did not comply with regulations, such as using separate oil to fry meat. “Halal food can be difficult to explain but it is very important to attract Muslim tourists,” he said.

Agreeing, Imran Kao, manager of Cambodia Halal Tourism, said: “It is positive for Muslim travellers if there is more Halal food available in Cambodia.”

Qatar Airways provides the only direct flight to Cambodia from the Middle East.

Paris hoteliers are dropping their room rates like never before in an unprecedented move to attract business, according to wholesale hotel room buyer, JacTravel.

“We’ve never seen anything like this before in the French capital at this time of year. From a pricing point of view, it is an amazing time to visit Paris,” said Marietta Fox, regional head of contracting with JacTravel, which claims to handle over 500,000 bednights in the city.

According to JacTravel, hotel occupancy for the Euro 2016 Quarter Finals and Final is even running well below the 90 per cent levels that would be expected for this time of year. Nearly all the hotels have space and many are desperate for guests.

The main price drop is among four-star hotels, with room rates cut in half in some cases. Marietta explained: “In Paris at the moment, there is huge supply and little demand, so you can get more for your money. Initially the hotels had resisted lowering their prices to see if demand picked up. But after a quiet early and mid-May, room rates began to tumble. However, the budget hotels are the least affected and seem to be faring slightly better.”

A swath of events, terrorism, the worst flooding in over a century and ongoing strikes, all contributed to a poor start to the summer season.

On whether Paris could recover, Fox said: “If the rest of the tournament passes smoothly in terms and security and the strikes are not too disruptive then we expect to see some improvement but it might be as late as September or October when things noticeably improve.”

Apart from Paris, holidaymakers could also get “some excellent deals” in other major European cities such as Rome, Vienna and Madrid where hoteliers are also reducing room rates, added Juan Morterero, vice president purchasing & product at JacTravel.

But not in cities such as Barcelona, Amsterdam, Copenhagen and Berlin, which are all experiencing high levels of bookings, said Morterero.

Victoria: PTAA is working to counter the fallout

IATA-accredited travel agencies in the Philippines have resigned themselves to a shorter airlines payment period beginning Friday despite strong objection from the trade.

Philippine Travel Agencies Association (PTAA) president Michelle Victoria stated in a memo to its members that IATA had given them “no choice but to accept” the new Express Weekly Remittance payment timeframe.

Under the new terms, agencies must credit airlines weekly instead of every 15 days.

“The weekly remittance is already being practised worldwide and the Philippines is among the last to adopt the change due to our continuous resistance,” said Victoria.

She added that there was “no cushion offered by IATA” for travel agents whose cashflow would be adversely affected. Some agency clients may have credit lines that are longer than the new remittance period, for instance.

Even the use of credit cards for payment, as suggested by some agencies, thereby extending credit lines through the banks, was not acceptable.

“The problem is not all airlines are in agreement,“ Victoria told TTG Asia e-Daily.

“We will continue to work on other options that can cushion the impact and soften the effect of this new scheme,” she added.

Murray Building

WHARF Holdings is redeveloping the iconic Murray Building in Central, Hong Kong into a “sophisticated urban chic hotel”, which is a near giveaway that the property will be branded Niccolo by Marco Polo.

The hotel, with 336 rooms, will open by the end of next year, but Marco Polo Hotels’ president, Jennifer Cronin, declined to confirm it would be flagged a Niccolo, only saying it would be “a new flagship for the group” and an “iconic, luxury landmark hotel in Hong Kong”.

Wharf, Marco Polo Hotels’ parent, acquired the building in November 2013 for HK$4.4 billion (US$567 million) through its listed subsidiary Harbour Centre Development.

The 27-storey majestic building with towering arches and a 50-year history is quite possibly the last remaining prime site in Central for a major hotel. It commands open green views over Hong Kong Park and is well-connected to other buildings in the neighbourhood and the MTR. The group is spending HK$7 billion to convert it into a “sophisticated urban chic hotel”, its website said.

This fits the bill of its Niccolo brand, which debuted at ILTM Asia in Shanghai last month with the announcement of further expansion in China and “ambitions to grow the brand beyond China”, said Philippe Schaetz, vice president sales and marketing of Marco Polo Hotels.

Currently, there is only one Niccolo in operation, Niccolo Chengdu, which is part of the International Finance Square (IFS) mixed use retail and commercial centre owned by Wharf. Three more Niccolo hotels are being developed in China, in Chongqing (opening 1Q2017), Changsha (4Q2017) and Suzhou (2018). As with the one in Chengdu, they are all part of a mixed-use retail and commercial complex.

Niccolo was conceived as a contemporary luxury brand to complement its classic sister, Marco Polo. The hotels tend to be smaller than Marco Polo Hotels, which usually have 300 rooms to 600 rooms, and are more suited to travellers who want understated luxury and are lifestyle-driven, explained Cronin. Niccolo Chengdu, she said, had successfully attracted captains of the industry and the high society, and positioned itself as the epicentre of fashion and business in Chengdu. Rooms are 45m² to 60m² in size; the art pieces in the hotel are one of its lifestyle offerings; and its focus of F&B and events has also been a big factor in drawing the crowds.

Cronin said Niccolo Chengdu, which recently celebrated one year of operation, shows the hotel group’s farsightedness and mantra to “build for tomorrow”.

“It also shows you don’t have to be a big brand with dozens of hotels in order to succeed,” she said.

Craig S. Smith, APAC president and managing director, Marriott International (left); Kwek Leng Beng, executive chairman, City Developments Limited

THE handing over of operations of self-managed hotel The South Beach Singapore to international hotel chain Marriott International was finally confirmed yesterday, after months of speculation, at a signing ceremony held at the iconic property designed by Philippe Starck.

This agreement sees Marriott convert the 634-room hotel into the JW Marriott Hotel Singapore South Beach, marking the JW brand’s debut in the citystate.

The hotel remains open during this refurbishment period and a relaunch is slated for November.

Marriott also announced it was bringing the Edition brand to Singapore. It will be an eight-storey, 190-room boutique luxury development located in the Orchard district called The Singapore Edition. A 2019 opening date was given.

When asked what benefit an external operator such as Marriott brings for hotel developers, compared to being self-managed, chairman of City Developments Limited (CDL) Kwek Leng Beng cited the pending merger between Marriott International and Starwood Hotels & Resorts, greater operational transparency and revenue optimisation as factors considered.

Referring to projects between CDL and Marriott in Hong Kong, Kwek said: “We have good experiences with Marriott in Hong Kong. They are very professional. (Plus they) have a good base of over 1.1 million rooms (worldwide) in 5,000 over hotels.”

As for Marriott, its Asia-Pacific president and managing director Craig Smith, said: “When you look at a partnership, you look at what each party can bring to the table and how you differ. We saw (Kwek) as someone who knows the hotel business, been very successful, and he has a very diversified business. He knows the hotel business in many parts of the world, not just in Asia, so we see him as a great partner.

“About what we can do for CDL, Marriott is one of the strongest hotel operators in the world and we have a pending merger with Starwood, which will make us the largest hotel operator in the world. Today we do US$10 billion in direct sales through our website, ranking it in the top 10 retail websites in the world, and that’s impressive.

“Obviously, there’s a lot of people booking through our systems and getting in our loyalty programme, which is also about to become the biggest hotel loyalty programme in the world.”

But a lingering question remains as to whether the JW brand is a good fit for the current design of South Beach. When asked what the renovation works over the next few months will entail, Smith said little would be done to the rooms while the spa would be renovated and the lobby expanded. Three new restaurants, including one helmed by renowned chef Akira Back, is also in the works, expanding total F&B offerings there to nine.

Speaking about future business plans, Kwek added: “My balance sheet is not highly leveraged, it is very lowly-geared. I got firepower and I am very confident about what is going on. If any (developer) can offer me something cheap (to buy over)…I’ll get Marriott to operate it.”

An SHC docent gives a tour of the bunker. Photo: SHC

THE Battlebox, a preserved military command facility and museum in Singapore, was relaunched yesterday nearly three years since coming under the management of the Singapore History Consultants (SHC).

The facility was in 1942 used by Allied forces to plot their battles after Singapore was attacked by the Japanese imperial army, a brief but turbulent period famously termed the Fall of Singapore. It was also here where the decision was made to surrender Singapore to the Japanese.

Today, nearly a decade after the site became a museum in 1997, SHC is hoping to raise it back into prominence.

The revamped museum will bring a fresh focus on “military strategies and tactics and the causes for military defeat”, shared Jeya Ayadurai, director of SHC.

In addition, the site received massive infrastructural improvements with support from the National Parks Board.

New exhibits include commissioned videos and artwork. Artefacts, such as those recently uncovered by archaeologist Jon Cooper from the final 1942 battle site of Adam Park, have also been added.

Meanwhile, SHC has retained mannequin impressions of the bunker’s military inhabitants inherited from the museum’s prior operator.

“The Battlebox is now poised to become an important heritage and educational site of relevance to a varied audience from local students to tourists to military professionals,” said Winston Choo, retired lieutenant general of the Singapore Armed Forces and Guest of Honour at the relaunch event.

Since the soft launch of the Battlebox tour in February, number of visitors has totalled about 7,000.

Darshini Tamilselvan, assistant manager at SHC, said: “We have seen greater interest from tourists as well as group bookings from government bodies and schools.”

Moving forward, the museum has plans to incorporate handheld multimedia devices, interactive activities and content on the post-war period, according to an SHC statement.

The museum runs three one-hour tours on Mondays between 13.30 to 17.00. For all other days of the week, five slots are available from 09.45 to 17.00. Prices start from S$18 (US$13.30) for adults and S$9 for children.

COSTA Cruises has partnered Singapore-based agency CTC Travel to offer a Christmas cruise package onboard the Costa Victoria, which sets sail from Singapore starting December 22.

The 5D4N sail from Singapore to Phuket and Langkawi will include a special entertainment lineup featuring performances by pop artistes Nicholas Teo, Z-Chen Chang and Taufik Batisah; a Michael Jackson tribute show, Feel the beat; and the Sapori d’Italia song and dance.

Bookings made before June 30 are entitled to deals such as the 4-to-Go promotion starting from S$363 (US$267.80) per person (pre tax, excursion fee and other charges) and a free upgrade from the Inside cabin to Oceanview cabin.

CTC Travel Club members are also entitled to further promotions.

Boracay, the Philippines

DIFFICULTY obtaining visas and insufficient marketing are the main hurdles facing agents when trying to attract more Chinese tourists to the Philippines, according to those interviewed at the recent Asia Premium Travel Mart held in Manila.

“It’s very, very difficult for Chinese travellers to get a visa to the Philippines because of the tedious application and processing requirements. It’s easier for them to get a visa to the US,” commented Gary Mo, director of marketing for Guangzhou-based All Perfect Tour.

He added: “China is very big but the Philippines only has a limited number of consulate offices there.”

While agreeing, Liu Lulu, operations manager of Beijing-based U Plus Club, said it helps that the Philippines now allows visa-on-arrival for Chinese nationals who were granted visa to the US and some other countries before.

Mary Ann Ong, general manager of Manila-based Luxus Pacific Travel and Tours, also pointed out that while the Philippines already grants group visas to the Chinese, there’s no need for that in other destinations like Malaysia, Singapore and Thailand as they offer the more convenient visa-on-arrival facility.

Meanwhile, marketing spend was reduced last year owing to political tussles between the two countries.

But travel agents are clamouring for more Philippine visibility in China. “There must be increased promotion especially on social media,” said Liu.

Ong concurs, saying that except for Boracay, Philippine destinations aren’t that well-known in China. “We’re not allotting enough budget for marketing,” she asserts.

For Mo, who also believes that more needs to be done, his agency has taken matters into their own hands by chartering flights to the Philippines and launching his own marketing campaigns in China without any support from authorities.