TCEB intensifies courtship of mega-size events

June 16, 2016

THE Thailand Convention and Exhibition Bureau (TCEB) has unveiled its strategic direction for 2016, highlighting key strategies to attract more large-scale meetings and incentives (M&I) by allocating a sales promotion budget under the Thailand Big Thanks! campaign

Nooch Homrossukhon, director of meetings and incentives, TCEB, said: “The emergence of mega-size M&I has been our new target over the past three years. We have put in place strategic plans, from raising awareness of Thailand as a premiere destination for M&I travel in Asia, to increasing marketing development activities through products and services promotions, and VIP receptions to event logistics and facilitation.”

The Thailand Big Thanks! campaign was created to help drive the M&I travel sector through a financial subsidy scheme of up to two million baht (US$257,740) for eligible events with more than 2,000 international delegates staying at least three nights in Thailand. The package started on October 1, 2015 and will run through to September 30, 2017, but travel must take place between October 1, 2015 until December 31, 2017.

Nopparat Maythaveekulchai, TCEB president, said: “With high spending power, every mega-size event can help inject healthy MICE revenue into our economy.”

While China is a major contributor, other key source markets for Thailand’s M&I drive include other Asian countries. Secondary markets include the US, Europe and Oceania.

“We believe that the effectiveness of the mega-size strategy for M&I sector, along with support for (other mega events), will play a vital role driving the Thai MICE industry to achieve this year’s target of 1,060,000 MICE travellers, and help to generate 92,000 million baht in MICE revenue for our economy,” Nopparat concluded.

In 2015, Thailand welcomed a total of 1,095,995 MICE travellers from around the world, generating 95,857 million baht in MICE revenue. Of these, 516,663 travellers and 44,533 million baht were from the M&I sector.

Sea World expands MICE offering with new Plaza

By Rebecca Elliott

June 16, 2016

SEA WORLD on Australia’s Gold Coast is gearing up for the launch of its new Plaza venue this August, just over a year on from the opening its Conference Centre.

Located in the heart of the theme park, adjacent to a number of rides and animals exhibits, the Plaza will be an al fresco venue with shelter, good for 800 delegates.

Speaking to TTGmice e-Weekly, Village Roadshow Theme Parks’ sales manager – conferences and events, Caroline Duveau-Clayton, said the Plaza had been designed to attract larger events looking for a unique venue.

“The Sea World Plaza venue can be themed to any formal or casual occasion, which will leave delegates with a lasting impression,” she said.

Duveau-Clayton also added that the Conference Centre, which celebrates its first birthday this month, has exceeded expectations and continues to grow.

“Being able to do business on a much larger scale has had a positive impact in all areas of our business including special events at our sister properties.”

ACTE names Jill Jefferis as director of global engagement

By TTG Asia

June 16, 2016

THE Association of Corporate Travel Executives (ACTE) has appointed Jill Jefferis as director of global engagement. She will be succeeding Amber Kelleher, who is leaving the association to launch a non-profit serving global communities in need.

Since June 13, 2016, Jefferis has assumed responsibility for the association’s global education and member engagement programmes, which has 35 events in 18 countries for the remainder of 2016.

The 20-year business travel industry veteran’s most recent appointment was director of API Management for Carey International. Her background spans travel automation, data management, multi-channel distribution strategies and sales support.

SilverNeedle sees opportunity for smaller hotel brands

By Rachel AJ Lee

June 15, 2016

WITH hospitality giants consolidating and adding more properties to their already-sizeable repertoire, Anand Nadathur, CEO of SilverNeedle Hospitality, sees an opportunity for his relatively smaller brand to carve out a niche.

“As these companies grow larger, we think a lot of the services and experiences will become more commoditised because if you are large you have to standardise. That gives us an opportunity to bring about something unique and differentiated as you have a segment of the travel population that does not want a commoditised experience,” he said.

SilverNeedle’s latest property, the Sage Hotel in Perth

SilverNeedle currently has a modest portfolio of 48 properties, mostly in Australia, its anchor market. But Nadathur said that they’ve now trained their sights on Asia and are planning to expand in the region.

“Our market for growth is going to be South-east Asia and South Asia, specifically India and Sri Lanka. In South-east Asia we currently have three properties, and another four to six in the pipeline. We also have a mixed-use development under construction in Sri Lanka’s Colombo city centre,” he said.

However, while the company is based in Singapore, they currently do not have a property in the country. He explained that they are “constantly looking for opportunities” but the opportunity hasn’t presented itself yet. He further expressed that he would “love to have one in Singapore”.

The group recently announced the opening of its newest property, a Sage Hotel in west Perth comprising 101 guestrooms in four configurations. Other facilities at the A$35 million (US$25.8 million) dollar development include a restaurant called Julio’s and two function rooms.

Jubilation as agent becomes next Philippine tourism chief

By Rosa Ocampo

June 15, 2016

Wanda Tulfo Teo

A TRAVEL agent will helm Philippine tourism beginning next month, a move enthusiastically welcomed by those in the trade.

Replacing tourism secretary Ramon Jimenez Jr., whose five-year tenure is hallmarked by the successful It’s More Fun in the Philippines slogan, is Wanda Tulfo Teo.

She has 22 years of experience as owner and president of Mt Apo Travel and Tours as well as being the president of the National Association of Independent Travel Agencies (NAITAS) Philippines since 2015.

Teo is currently based in Davao City, alongside Philippine president-elect Rodrigo Duterte, who personally appointed her.

The trade is positive that someone recruited from the agency ranks will bode well for tourism instead of having an outsider, such as a politician, to be appointed to the plum post.

“She’s not a politician. My main worry was that the president might appoint a politician,” said Arnie Bayag, consultant at Travelexperts.

Bayag said Teo’s edge is that she knows the industry and what it needs and having come from Davao, she is expected to tackle order and infrastructure issues that are crucial to tourism.

“Secretary Jimenez sells the Philippines very successfully. Teo should maintain the marketing initiatives that Jimenez had and build on it, though not necessarily the same marketing slogan” added Bayag.

The Discovery Leisure Company’s corporate director of sales and marketing Odette Huang is hopeful that Teo, “as an experienced member of the travel industry”, “will provide continuity in enlivening the image of the Philippines”.

“The resonance of the It’s More Fun in the Philippines campaign is one of the hallmarks of secretary Jimenez. It created a positive buzz associated with the promise that Filipinos can deliver from the heart,” said Huang.

Eugene Tamesis, director of sales and marketing, Raffles and Fairmont Makati, while concurring that Jimenez did wonders for tourism, is hopeful that Teo’s appointment will be a “change for the better.”

Another travel agent, who requested anonymity, said Teo seems capable and her appointment should be fine so long as she gives up her interests in Mt Apo Travel and Tours to avoid a “conflict of interest”.

Sources indicate that Teo is planning just that and NAITAS will be meeting this month to discuss her replacement.

Overheard: The downside of Airbnb rentals on tour operations

By Xinyi Liang-Pholsena

June 15, 2016

Pattaya, Thailand

WHILE the overwhelming success of the sharing economy has roiled the hotel industry the world over, tour operators are not spared some of the fallouts as peer-to-peer travel grows in popularity in Asia.

At least one travel supplier is lamenting the impacts of vacation rentals on its operations, as some FITs who take to Airbnb to book accommodation in Thailand are not able to give clear directions on their pick-up locations for day trips, resulting in miscommunication and anguish on both ends.

“We have had FIT clients telling us to pick them up in condominiums, private houses and even gated communities,” said Chakrawooth Kaewjunthong, product manager and deputy general manager at Alibaba Group Holding, a Bangkok-based B2B travel wholesaler.

“However, when we ask for their specific locations, they’re unable to give details of where they are. Sometimes, the apartment owners are not Thai and are not able to help by giving clear directions to their residences too.”

This situation is particularly severe in Pattaya, a popular tourist and real estate investment destination in Thailand and where holiday rentals via Airbnb are increasingly prevalent, according to Chakrawooth.

Thai Hotels Association president Surapong Techaruvichit had earlier urged the government to clamp down on owners who rent their condo units, resort homes and shared rooms on a daily basis using Airbnb as they are violating the Hotel Act.

Arrivals into Hong Kong down 10.9 per cent in Q1

By TTG Asia

June 15, 2016

Hong Kong International Airport

WHILE Asia-Pacific recorded overall growth in inbound travel in 1Q2016, international visitor arrivals into Hong Kong plummeted after the city saw a drastic fall in visitors from China, according to a PATA financial report.

International visitors into north-east Asia was modest at 1.6 per cent, with Hong Kong seeing a 10.9 per cent fall in arrivals after being set back by a 15.1 per cent decline in visitors from China.

In contrast, South Asia saw arrivals grow 11.1 per cent, driven by increased traffic into Sri Lanka (22.1 per cent) and India (10 per cent).

In the Pacific subregion, Oceania reported robust growth (12 per cent) during the quarter, having seen strong arrivals from north-east Asian source markets.

Vietnam saw highest growth (19.9 per cent) in South-east Asia while the Philippines, Singapore and Thailand also reported strong growth ranging between 14 and 16 per cent.

The 29 Asia-Pacific destinations considered in the report recorded a combined inbound total of 83.8 million international arrivals into Asia-Pacific in the quarter with a growth rate of 7.4 per cent over the same period last year.

King Power chairman takes stake in Thai AirAsia

By TTG Asia

June 15, 2016

(From left to right) Aiyawatt Srivaddhanaprabha, CEO of King Power Group; Vichai Srivaddhanaprabha, King Power Group’s chairman; Tassapon Bijleveld, CEO of Thai AirAsia; and Arthid Nanthawithaya, CEO and deputy chairman of the executive committee of Siam Commercial Bank at the official press conference

CHAIRMAN of King Power, Vichai Srivaddhanaprabha, together with his family, has taken a 39 per cent stake in Asia Aviation PCL (AAV), which holds a majority 55 per cent stake in Thai AirAsia.

The deal, valued at around 7.9 billion baht (US$225.8 million), calculated at 4.2 baht per share for approximately 1.9 billion shares, is purchased from Tassapon Bijleveld, CEO of AAV and Thai AirAsia, and his family. Tassapon will continue to lead AAV and Thai AirAsia after the sale.

In a joint statement, Vichai stated that he hopes to create better synergies between Thai AirAsia and King Power, the only duty-free operator in Thailand, through this acquisition.

The statement added that the share pricing of 4.2 baht per share, a sum significantly lower than market price, is due to laws and regulations that airline businesses in Thailand need to have at least 51 per cent of their shares owned by Thai nationals.

“Given the restrictive nature of such rules, there are only a handful of Thai individuals who, realistically, would be interested in and could afford the purchase price,” it stated.

Vichai also appointed Aiyawatt Srivaddhanaprabha, Apichet Srivaddhanaprabha and Sombat Dechapanichkul as directors of AAV, tasked with identifying and planning the company’s visions and business strategies together with Tassapon and the management of Thai AirAsia.

Aiyawatt, who is also CEO of King Power, said that the two companies will cooperate to create new business opportunities, highlighting specifically the large customer bases in China and South-east Asia.

“Thai AirAsia and King Power will team up to develop their brands, products and services together, with the aim of providing customers with international-quality shopping and travel experiences at affordable prices,” he said.

Garuda’s Medan-Singapore route harks new growth plan

By TTG Asia

June 15, 2016

INDONESIA’s national carrier has re-launched daily flights between Medan and Singapore yesterday, signalling plans for the airline to embark on a new expansion trajectory.

Garuda’s service is being operated by a Boeing 738 with a two-class cabin configuration – business and economy. Flights depart from Kualanamu International Airport at 13.30 and arrive at Changi Airport at 16.00, while the service from Singapore departs at 11.15 and lands in Medan at 11.45.

The timing of the service means that travellers from Medan will not be able to connect with Garuda’s Singapore-London or Singapore-Amsterdam routes.

According to a Centre for Asia Pacific Aviation (CAPA) report, the Medan-Singapore schedule seems to indicate that Garuda is not serious about developing Singapore as a hub, which was its strategy a few years ago.

Instead, “Garuda will likely remove the Singapore stop for Amsterdam and London once a runway improvement project at Jakarta is completed,” reasoned CAPA, as the upgrading works will then allow the flag carrier to offer direct flights from Soekarno-Hatta Airport to Europe.

“Offering nonstops on all its European flights in both directions is sensible as it will significantly improve Garuda’s product from its home market of Indonesia and from Australia,” stated the report.

This is in line with what Garuda has been doing the past one year to increase its European operations. From only five weekly flights to Europe in May 2015, it now has 11 weekly flights there, accounting for roughly 10 per cent of Garuda’s international available seat kilometres

The quest for high-yield clientele

By Raini Hamdi

June 15, 2016

While TAT says it wants to focus on quality, a planned, coordinated approach is needed. By Raini Hamdi

With slower growth from Europe due to economic reasons and recent terrorism incidents, and a surge in arrivals from Asia driven in part by an increased number of budget carriers, Bangkok lands itself in a situation where too many upscale and luxury hotels are chasing too few high-yield clients.

The quest for better-paying guests has become critical, even as more than 2,200 luxury hotel rooms are opening along Sukhumvit Road over the next 18-24 months, and more new hotels will sprout along the Chao Phraya River and in the Ratchadamri area, observed Richard Chapman, general manager of Sheraton Grande Sukhumvit.

The Tourism Authority of Thailand (TAT) said it is “fundamentally changing” its marketing plan to focus on quality experience than arrival numbers growth. At a recent GTA meet, deputy governor Juthaporn Rerngronasa said as part of the plan there would be increased focus on digital media and content marketing and a move to target high-yield niches including luxury travel, cruise market, health/wellness, honeymoons, golf and community tourism.

The meeting also sealed a strategic partnership programme among TAT, GTA and 64 premium hotels in Thailand to drive higher-spending tourists.

But industry players want to see more done. In a string of interviews, a common wish is getting back the MICE business.

Saying that having more international MICE events would help to increase arrivals and yield in Bangkok, Lim Boon Kwee, CEO of Dusit International, also believes that Thailand would do well to encourage investments.

“While promotional activities seem predominantly on the leisure sector, encouraging investments into the country will help increase the number of business travellers which will provide a higher yield,” Lim reasoned.

“Thailand is still an extremely competitive and cost-effective location for business investments compared to many other countries.”

Industry members also believe that with sophisticated travellers and competition from other destinations, Thailand needs to create or pull in world-class events year-round and deliver unique experiences.

Chapman summed up these sentiments: “Apart from staying in luxury hotels and dining in quality restaurants, the luxury traveller is looking for high-end activities. Palatial shopping malls with global known brands we have. But what we lack is quality entertainment year-round in the form of an opera house, international theatre productions, etc, as found in Hong Kong or Singapore.

“TAT, supported by sponsorship from private companies, should establish some top-end sporting events. Local tour operators must improve the quality of their tours both in terms of properly trained guides, but also curating interesting and educational experiences, rather than that dreadful one day tour to Damnoen Saduak floating market.”

David Cumming, Onyx Hospitality Group’s vice president area general manager Bangkok, said while TAT claimed a shift to high-yield visitors, a clear strategy was needed.

“A working party with TAT, wholesalers, airlines and hotels to put a concrete plan in place with a strong drive from TAT is required,” he said.

GTA’s strategic partnership programme may be a testbed. Daryl Lee, GTA regional vice president of sales and marketing AMEA, said the plan would be led and coordinated by GTA and would involve a series of marketing activities and promotions in key source markets across Asia-Pacific and the Middle East.

There would be education workshops and seminars to update the trade on the latest must see, do and experience in Thailand. Frontline retail travel agents would also be armed with tools and knowledge to better promote Thailand as a luxury destination. As well, GTA is working with TAT to bring more travel trade professionals to Thailand to experience some  of the luxury holiday experiences.

“The partner hotels are an integral part of the programme and each will work closely with GTA to offer travellers a luxury experience when they visit Thailand,” Lee said.

When asked how he planned to drive a higher ADR, he said: “ADR is really a basic component of supply and demand. For example, if we can better showcase the higher category rooms (such as suites and villas), more people will choose to stay in them the next time they visit Thailand. We also want to encourage people to stay longer when they visit by developing new and interesting experiences, showcasing the hidden gems of Thailand.”

Lee pointed out that Thailand was so successful for its outstanding value for money that travellers often overlook that the country has a lot more to offer.

“For example, a yacht charter to cruise the Andaman Sea is just as enjoyable but will cost far less compared to hiring a yacht in Europe or the US. And so, it will take some time for tourists to realise the potential of Thailand as a luxury destination.”

GTA aims to realise that by showcasing the latest happenings, the outstanding value and quality Thailand offers.

“Last year, our ADR for Thailand rose 12 per cent year-on-year and we are looking to double that growth in 2016, driven by the strategic partnership programme,” Lee said.

This article was first published in TTG Asia, June 3, 2016 issue, on page 34. To read more, please view our digital edition or click here to subscribe