Indian corporate incentives to Indonesia looking optimistic

September 30, 2015

THE Indian MICE market, particularly the corporate incentive segment, is looking bright for Indonesia, according to Visit Indonesia Tourism Officer (VITO) India.

“We have seen a growing interest from corporate incentives to Indonesia, particularly Bali,” said Sanjay Sondhi, country director of VITO India.

India is one of the few markets posting a strong increase in arrivals to Indonesia. Arrivals from India between January and July totalled 153,521, rising 10.4 per cent from 139,119 during the same period in 2014, according to data from the Ministry of Tourism.

With full-year arrivals from India surpassing the initial arrival target of 210,000 to reach 238,000 in 2014, Sondhy is optimistic the target of 250,000 arrivals would be achieved this year.

Suppliers in Bali are also confident of netting more MICE business from India.

Discovery Kartika Plaza Hotel Bali recorded a 10 per cent growth in the Indian market last year, with MICE comprising 30 per cent of the Indian market.

Alice Matulessy, director of sales and marketing, said: “Most Indian groups staying with us are incentives, with at least one private dinner in-house.”

Saraswati Subadia, director of sales MICE at The Westin Resort Nusa Dua Bali, said: “We have had big Indian weddings before but MICE from this market is new. This year, we have seen many inquiries coming in for MICE.”

Last year, Bali Nusa Dua Convention Center (BNDCC) handled two incentive groups from India which included meetings and gala dinners at the facility.

Yasinta Hartawan, general manager, operations of BNDCC, said: “They did not require anything specific or themed dinners other than requesting for authentic Indian food prepared by Indian chefs.”

The inbound MICE market from India could welcome more diversification though, observed Umberto Cadamuro, COO of Pacto. “Incentives from India are plenty but there is hardly any meeting. (Indian MICE groups) are more leisure oriented.”

Nevertheless, Umberto sees strong potential in the Indian MICE market although he stresses the importance of improving the awareness of the destination, especially among the frontliners.

“Let’s take a big incentive request from India to Bali for example. DMC bosses may know the products (in the destination) well because they have been coming, but the ones handling it is the staff and they may not know that Bali has many quality upmarket hotels with affordable prices to offer their clients,” he said.

To address this issue, Pacto recently led a group of hoteliers and suppliers from Bali on a sales mission to Mumbai and Delhi, conducting a table-top meeting for Outbound Tour Operators Association of India members to enhance their product knowledge of Bali.

Read more reports from the ground in our IT&CMA and CTW Asia-Pacific 2015 Show Dailies.

Beach resorts: sunny with a chance of more growth

By TTG Asia

September 30, 2015

South-east Asia’s tropical beaches sees no shortage of sunshine and visitors. TTG Asia takes a closer look at how four classic beach destinations in the region are faring

Phuket By Michael Mackey

Performance in the last six months
Phuket continues to log healthy growth, driven by strong Asian arrivals and spending, observed the island’s hoteliers and tour operators.

“The first two quarters of the year have been very good for our hotels, (with) average occupancy 80 per cent and above, and RevPAR above 2,200 baht (US$62),” a Best Western International spokesperson told TTG Asia.

Confirming the trend of higher occupancy and spend, Keith Won, director of sales & marketing, Anantara Phuket Villas, said: “The overall RevPAR has also shown good increases in line with the overall occupancy.”

Following its relaunch, Amari Phuket saw a “superb” 1H2015 that accounted for the resort’s best performance in 30 years, according to Pierre-Andre Pelletier, vice-president & area general manager – South Thailand, Onyx Hospitality Group.

Ianic Menard, Accor’s vice president for sales, marketing & distribution in upper South-east Asia, attributes Phuket’s growth to the “strong increase in intra-Asia travel” that is led by China, Australia and India. “The increase in Chinese guests has buoyed the island through what is meant to be low season,” Menard commented.

On the other hand, Europeans are increasingly shifting from Phuket to other beach destinations like Krabi, Khao Lak and Koh Lanta, observed Laurent Kuenzle, CEO of Asian Trails.

“The image of Phuket is becoming one that is more focused on entertainment and preferences of Asian visitors,” he added.

Outlook for the next six months
Despite the recent Erawan bombing in Bangkok, hoteliers in Phuket are confident that growth on the island will continue. They are also watchful of the international economy but stay upbeat.

“We remain positive about the outlook for the rest of the year and expect to see a continued increase in occupancy and ADR,” said Anantara Phuket Villas’ Won.

Menard said that Accor is already seeing increasing bookings for Phuket, especially during the Christmas and New Year period. The MICE sector is expected to do well too.

“The cost of organising meetings, events and incentive travel programmes in Phuket are feasible with reasonable prices, so the island will continue to be a South-east Asian hub for MICE travellers. This sector will continue to be a significant source of revenue for stakeholders in Phuket,” added Menard.

Improved infrastructure on the island is also contributing to the growth of arrivals. The airport is undergoing upgrading, while new shopping malls are also likely to increase the number of high-end tourists, sources said.

What’s new

Keemala This luxury villa property located near Kamala Beach is seen as a key part of the island’s renaissance. The 38 pool villas are inspired by the way the island’s early settlers built their homes.

In the pipeline

Cassia Phuket Banyan Tree’s newest brand Cassia will open in October this year. Located within Laguna Phuket in Bang Tao Bay, it will have 221 residences and an additional 105 when a second tower is added in 2017.
Phuket International Airport General improvements will be made and a private jet terminal added. When the 5.7 billion baht (US$15.9 million) expansion is completed by February 2016, it will enable the airport to handle 12.5 million travellers a year.

Bintan By Paige Lee Pei Qi

Performance in the last six months
The opening of Lagoi Bay in May has elevated the allure of Bintan island with its crop of resorts and lifestyle attractions.

According to Bintan Resorts International (BRI), director of marketing, Asad Shiraz, although year-on-year arrivals declined 2.5 per cent in 1H2015, the numbers in May and June climbed 9.2 per cent and 9.5 per cent respectively following Lagoi Bay’s launch.

Shiraz said: “(Lagoi Bay) attracted both locals and visitors alike to (experience) the new activities. We hyped up our marketing campaigns as well for this opening to increase exposure and awareness.”

This 1,300ha development consists of residences, shopping centres and five resorts. The Sanchaya and Swiss-Belhotel Grand Lagoi have launched, while MoUs were signed for new hotels to be managed under the following brands: Four Points by Sheraton, ibis Styles, Novotel, Dialoog Hotel, Prime Plaza and Ambhara Hotel.

Lagoi Bay’s opening also went hand-in-hand with that of the 60-outlet Plaza Lagoi Mall, with Indonesia’s major retail operator Pasaraya as both anchor tenant and manager.

Outlook for the next six months
The outlook for Bintan is upbeat with the opening of Lagoi Bay, which will be further complemented with the crop of dining options and attractions coming online in the second phase of development.

Shiraz added: “The addition of these new hotels will significantly increase the rooms, activities and amenities available. Bintan Resorts will become an even more sought-after island destination and a twin destination with Singapore.

He is confident that the intensified marketing efforts, targeted primarily at Singapore, China and India markets, will “yield positive results as well”.

For example, Bintan Resorts earlier partnered with Changi Airport Group to promote the twin-destination concept, particularly to the India market. Visitors from India heading to Bintan Resorts can now enjoy a S$30 (US$22) voucher while in transit at Changi Airport, along with a free Mangrove Discovery Tour.

Shiraz added: “The soon-to-be-implemented visa-free facility for 30 nationalities entering Indonesia via Bintan ports is also expected to give arrivals a lift.”

What’s new

Plaza Lagoi Touted as Asia’s first beach village mall, the 20ha Plaza Lagoi has the highest concentration of commercial and recreational activities on the island. A ferry check-in facility at Plaza Lagoi allows easy check-in of luggage and collection of boarding passes.
Swiss-Belhotel Grand Lagoi Located at the northern tip of the island, next to Lagoi Beach Village, this 196-room hotel offers meeting facilities, a rooftop pool and shopping outlets.
The Sanchaya Besides offering guests the romance of colonial elegance of a bygone era, this 30-key luxury resort boasts its own VIP lounge in the ferry terminal.
The Canopi This 41 tent-suite resort offers the unique experience of glamping with modern amenities and furniture.

In the pipeline

Alila Villas Bintan Set on a hillside location in Lagoi Bay, the 14.4ha property will comprise 12 three-bedroom beachfront residences and a boutique resort with 52 one- and two-bedroom guest villas.
Bintan Resorts International Airport Slated to open in 2017, the airport will have a 2.5-km runway and can accommodate aircraft such as the Boeing 737 and Airbus 320, giving it an operational radius of about five hours – placing southern China and southern India within reach.

Bali By Mimi Hudoyo

Performance in the last six months
Bali’s popularity as a beach destination continues to grow, with international visitor arrivals reaching nearly 1.9 million in 1H2015, up 9.4 per cent from 1.7 million the same period last year, according to data from Statistics Indonesia (BPS).

However, Horwath HTL reported a dip of five to 10 per cent in Bali’s hotel occupancy. Matt Gebbie, director, Pacific-Asia of Horwath HTL, said: “Occupancy at lower priced hotels, particularly those with an average daily rate below US$59, was the hardest hit.”

Trade members attributed the occupancy drop to an oversupply of rooms. BPS data shows that Bali had 249 star-rated hotels with 28,811 rooms in 2014. This year, 30 more hotels are expected to open and add another 5,677 rooms.

Gebbie said: “The opening of new properties had an impact on hotel performance as there is greater competition. Besides, hotels don’t open at peak performance and it takes time to ramp up, so this drags market averages downhuh .”

The domestic market also plays a big role in filling up rooms, but domestic arrivals at Ngurah Rai International Airport in the first five months (available data at press time) fell five per cent from the same period last year.

“(The) higher cost of (domestic) flights compared with other destinations negatively impacted domestic tourism,” Gebbie reasoned.

Bali Airport’s closures during the Mount Raung eruption in July also caused some traffic diversion from the destination. Ida Bagus Ngurah Wijaya, Bali chapter chairman of Indonesia Tourism Industry Association, said: “(The closures) took place during the school holidays, so travellers were likely to divert their trip to other countries.

“It was a force majeure and we do not expect any long-term impact. Nevertheless, the Ministry of Tourism has planned a recovery programme,” he added.

Outlook for the next six months
Industry players are expecting higher arrivals to Bali in the second half of the year.
Horwath’s Gebbie said: “New direct flights from the Middle East will have a positive impact on accessibility (between Bali and) the world. The weak rupiah will encourage Indonesians to stay within the country and foreigners to visit. There is also optimism over the new visa-free entry regulations – time will tell.”

The struggling Indonesian economy is likely to affect hotel performance though, opined Marc Steinmeyer, president director, Tauzia Hotel Management. “The hotel projects we see today were planned three, four years ago, when the economy was booming. While there will be opening delays, developers will try their best to open their properties to avoid losing the land value.”

Gebbie added: “I fear that hotels will continue to drop rates in an attempt to capture demand. Many of the newer hotels are between a rock and hard place with revenues lower than budget and construction/land debts to pay.

“This will impact booking lead times as domestic guests in particular are aware of the situation and delay booking their rooms until the last minute (to land) a great deal,” he added.

What’s new

Surf & Turf Tjendana Corporation, Bali launched a new beach club and amusement water park at Nusa Dua Beach. It offers the first surf rider in Bali along a space bowl and 6m-tall water slides.

In the pipeline

Rosewood Tanah Lot Bali The group will mark its entry into Indonesia with its first property in Bali in 2017. The 12ha property will feature 80 suites, 27 villas and 29 Rosewood Residences.

Langkawi By S Puvaneswary

Performance in the last six months
Arrivals to Langkawi are generally stable, with the destination receiving close to 1.5 million international and domestic tourists in the first five months of 2015, a slight increase of one per cent compared with the same period in 2014.

Working in Langkawi’s favour is the depreciated ringgit, which compels locals to visit the archipelago while making the destination comparatively cheaper than its regional competitors too.

The longhaul market in 1H2015 was a mixed bag of performance, according to inbound consultants TTG Asia spoke to.

Discovery Overland Holidays saw a 10 per cent increase in UK tourists from 2014, said Kingston Khoo, senior manager, product development and contracting.

“The British pound has appreciated and the UK economy has improved, (so) we think this resulted in renewed interest for the destination,” he added.

Bookings from the UK and Central Europe during the summer months of July, August and September, traditionally the peak season for European arrivals to Langkawi, were strong, added Khoo.

For Diethelm Travel Malaysia, the German market to Langkawi decreased more than 10 per cent in 1H2015, a likely result of the two Malaysia Airlines disasters in 2014, as well as the weaker European economy, said managing director, Manfred Kurz.

Meanwhile, Andy Yow, director of sales and marketing at Vivanta by Taj – Rebak Island Langkawi, said Langkawi saw stiff competition in the first half of the year as many resorts in Phuket courted the European market with aggressive promotions.

“We started our own promotion in May 2015, which will run through to March 2016, for the Europe market. However, this promotion was too late for 1H2015 and we saw a four per cent dip in arrivals from the UK and Germany,” he shared.

On the other hand, Langkawi is steadily building up its appeal to Chinese visitors. Winnie Ng, deputy general manager, Pearl Holiday Travel & Tour, recorded a 60 per cent surge in Chinese arrivals to Langkawi in 1H2015, with interest coming mainly from FITs and incentive groups.

Outlook for the next six months
Looking ahead, the Chinese market is expected to do well for Langkawi although the Middle East and European markets appear more unpredictable.
Pearl Holiday’s Ng does not think that a slowdown in the Chinese economy and the recent renminbi devaluation would impact arrivals, especially with a weakened ringgit, and predicts a good 2H2015 and 1Q2016.

Having welcomed a Perfect China incentive group of 2,000 pax to Langkawi in July, Sunflower Holiday’s managing director Mint Leong is projecting “a 20 per cent increase in arrivals to Malaysia”.

At press time, there were 62 confirmed charters from Xi’an and Chengdu in 2H2015, according to Rosnina Yaacob, tourism division manager at Langkawi Development Authority.

Diethelm’s Kurz added: “Bookings from Germany looked better in the second

half of the year, but it is still slower than 2014. The euro is still weak, thus prompting many holidaymakers to choose medium-haul destinations instead of longhaul.”

Ally Bhoonee, executive director of World Avenues, saw a “big drop” from the Middle East market mainly due to political instability in the Middle East, but also in part due to the EU granting Emiratis visa-free entry to Schengen zone countries which diverted some traffic away to Malaysia .

What’s new

Langkawi International Convention Centre Located adjacent to The Westin Langkawi Resort & Spa, the centre features a grand ballroom with a 1,000 pax capacity and seven meeting rooms.
Langkawi Art of Paradise 3D Museum This three-storey museum at Oriental Village in Burau Bay showcases more than 100 interactive 3-D paintings.
Langkawi SkyDome South-east Asia’s first outdoor dome on top of Machinchang Mountain is accessible via the Langkawi Cable Car.

In the pipeline

St Regis Langkawi Scheduled to open in November 2015, the resort will have 85 suites and three water villas. Each guestroom will also feature the signature St Regis Butler Service.
Ritz-Carlton Langkawi The 150-room luxury resort at Pantai Kok will open in late 2016. The property will also have 42 villas and three swimming pools.

Additional reporting from Paige Lee Pei Qi, Mimi Hudoyo, and S Puvaneswary

Opportunities flourish for multi-city programmes in South-east Asia

By Mimi Hudoyo

September 30, 2015

Destinations in South-east Asia could potentially cater to multi-destination business event programmes, particularly for small-sized incentive and conference groups with optional pre/post-show activities, concluded the panellists speaking at the inaugural ASEAN MICE Forum’s opening session.

Sharing her observations at the session on ASEAN, a one-stop MICE wonderland, Pornthip Hirunkate, deputy CEO of Destination Asia Group and managing director-Thailand of Destination Asia, said multi-destination incentives were more popular with longhaul clients “who have come all the way from Europe or the US to this region and want to cover as (many destinations) as possible because incentives don’t usually (return to the same region)”.

She said these clients would do Thailand-Myanmar-Cambodia, Singapore-Bali or Singapore-Malaysia combinations.

For corporate meetings, multi-destination itineraries are possible when optional pre/post-show programmes are included, according to Hugo Slimbrouck, director of strategic partnerships, Ovation Global DMC.

Core programmes are unlikely to be held in more than one destination in South-east Asia, he noted, especially since “meetings nowadays are shorter, lasting one and a half days or two”.

Although destinations in South-east Asia offer much cultural and historical charms, and are seeing new tourism infrastructure developments, Slimbrouck pointed out that the purpose of the corporate or association meeting – not tourism appeal – would drive destination choices.

Referencing her past experience as event manager of major international firms like Morgan Stanley and First Protocol, Sarah Randall, head of MICE Services of Centara Hotels & Resorts, said destination choices would depend on “the individual market segment and objective of the event, whether it needs teambuilding, CSR elements or purely economic (achievements).”

Business meetings that cover several destinations in the region were more likely with roadshows, Randall said, adding that financial sector clients tended to focus on business hubs like Singapore, Bangkok and Jakarta.

The three panellists believe complex logistics that come with multi-destination programmes will deter event planners. To minimise such challenges, Randall said hotels must help by providing a single point of contact for event planners.

“Hotels in this region must also help to market the destination by educating clients on what’s available besides the hotel and its meeting facilities. I have ballrooms in my hotel, but so does the hotel next door. We guide our clients around the destination and show them how a meeting in the city like Bangkok could work with a post-event programme in a resort destination like Hua Hin,” she said.

What destinations in South-east Asia have going for them is the availability of convenient air links within the region, said the panellists. While destinations in the region are connected by a multitude of low-cost carriers, Pornthip said these are not options favoured by incentive winners. Instead, full-service regional carriers are preferred.

“That’s why boutique carrier Bangkok Airways has been able to do so well with (business travellers),” said Randall, pointing to its good ASEAN connections and brand positioning.

Commenting on the panellists’ views, Ally Lai, managing director of i Life China which specialises in incentive travel, told TTGAsia e-Daily that destinations in the region that are connected to one another by convenient transportation are favoured.

She also found that “combining destinations in the ASEAN region is possible when a group has fewer than 100 pax”.

Read more reports from the ground in our IT&CMA and CTW Asia-Pacific 2015 Show Dailies.

Melbourne’s pop-up culture

By Rebecca Elliott

September 30, 2015

The flourishing pop-up trend is attracting visitors to Melbourne, offering a different way to appreciate the city’s cosmopolitan culture

In May, Melbourne welcomed the world’s first pop-up rooftop ‘glamp’ site, St Jerome’s – The Hotel. Inhabiting the vacant rooftop of Melbourne Central shopping centre, the luxury camping ground features 25 standard ‘rooms’ and five ‘suites’ – four- and five-metre canvas bell tents – a guest-only communal lawn and bar, 24-hour concierge service, free tai chi and meditation classes each morning and breakfast hampers.

Yet, despite being “really well received” according to owner Jerome Borazio (co-founder of St Jerome’s Laneway Festival), it will not be around for long. Originally slated to open for six months, Borazio and his team are hoping to extend its lease to take advantage of the summer months.

St Jerome’s – The Hotel epitomises the pop-up culture that Melbourne has embraced over the last few years, transforming the city into an experiential playground. “I think overall, pop-up has a reputation for providing great services and experiences,” said Borazio.

In addition to St Jerome’s – The Hotel, recent examples of Melbourne’s pop-up initiatives include Rue & Co, a collective of three popular eateries – Kong, Jimmy Grants and St Ali – housed in shipping containers; MPavilion, an architectural commission that saw a temporary structure erected in Queen Victoria Gardens to host public events; and the Magnum Ice-cream Pleasure Store, a design-your-own concept store set up in Emporium Melbourne shopping centre.

Tourism Victoria is actively promoting the city’s burgeoning pop-up culture. Pop-up was also a major theme at the recent Insights@Melbourne media event held as part of the Australian Tourism Exchange in Melbourne in June.

Tourism Victoria’s chief executive, Leigh Harry, said that Melbourne’s hidden and unexpected experiences such as its laneways and hole-in-the-wall cafés have long been a signature of the city. “For international visitors, uncovering these hidden gems adds to their appreciation of Melbourne’s culture and enables them to rub shoulders with locals,” he said.

A guest speaker at Insights@Melbourne was Bec McHenry, the chief executive of The Space Agency, a local company specialising in activating vacant or under-utilised spaces. She said that in order for Melbourne to remain relevant and retain its title as the World’s Most Liveable City, it needs to stay ahead of the curve and pop-ups help to achieve that.

McHenry and her team are in the early stages of utilising pop-ups to re-energise popular tourist destinations like St Kilda’s Fitzroy Street and Acland Street, which over time, have become tired.

“We are working with a number of local stakeholders to help activate Fitzroy Street and bring commercial density back to the area,” she said. “We see great opportunities for businesses, both existing and newcomers. I don’t think we will recognise Fitzroy Street in two years’ time.”

Watch this space.

This article was first published in TTG Asia, September 18, 2015 issue, on page 20. To read more, please view our digital edition or click here to subscribe.

Silver lining for Malaysia and Thailand amid currency woes

By S Puvaneswary

September 30, 2015

MALAYSIA and Thailand are experiencing a depreciation in their respective currencies although there are signs that the MICE sector could benefit from the market turmoil.

In spite of the combined onslaught of a depreciating currency and sluggish economy, MICE operators in Malaysia are seeing strong bookings from Chinese MICE groups for 2016.

The bookings have been driven by improved air links from China and visa exemption to be granted for Chinese groups of 20 pax and more from October 1 to March 31, 2016.

Air China will resume four-times weekly services between Beijing and Kuala Lumpur from October 25, complementing the daily services of Malaysia Airlines and AirAsia X. China Southern Airlines will also commence thrice-weekly services from Guangzhou to Kota Kinabalu from December 1.

Li Haijiao, account manager of Beijing-based Comfort MICE Service, said: “Better direct air accessibility and visa waiver for groups will definitely help to promote (Malaysia). Air China also has a good reputation and is a trusted brand among Chinese travellers.”

Chinese MICE groups are showing a stronger interest in Malaysia, observed Winnie Ng, deputy general manager of Kuala Lumpur-based Pearl Holiday Travel & Tour, which participated in a recent roadshow organised by Malaysia Convention & Exhibition Bureau to major Chinese cities.

She said: “(Chinese) government officers are limited to a budget of US$110 per room night in Malaysia. With good rates and promotions from five-star hotels in the capital, many (Chinese MICE) are opting for five-star properties.

“We have a confirmed booking of between 1,500 to 1,800 pax from a multi-level marketing company from China for May 2016 and another multi-level marketing company for 3,300 pax in July 2016.”

Likewise, KL Tan, general manager of Borneo Trails Tours & Travel in Kota Kinabalu, is also seeing strong forward incentive bookings to Kota Kinabalu from China for 2016.

Over in Thailand, the MICE sector might see some mild benefits from the depreciation of the baht, buyers at IT&CMA told TTG Asia e-Daily.

A weaker Thai baht will work in the favour of the Thai MICE sector “a little bit”, especially in the context of other regional currencies, said Aleizer Yrrah Jasmin, MICE travel consultant with Philippines-based Corporate International Travel and Tours.

Longhaul buyers like Jorge Vasques Rodrigues, administrator/executive officer of Lisboa-based Sotto Tour Travel Engineering, also views a weaker Thai currency “an advantage”.

However, some trade members are not convinced that a cheaper Thailand would suffice to reboot its plateauing MICE sector, especially in an era of heightened security worries in the wake of the recent Erawan bomb attack in Bangkok.

Liam Crawley, chief financial officer, Wyndham Vacation Resorts Asia-Pacific, pointed to a more immediate financial problem a dipping baht brings. “Hotels will be negatively impacted should they incur costs not in Thai baht.”

On the other hand, despite the Singapore dollar surging to a new high against the ringgit, Malaysia appears less desirable as a destination for Singapore MICE groups, with agents reporting slower business events bookings from the Lion City this year.

RA Jits Travel & Tours managing director, Harminderjit Singh, said the strong Singapore dollar and good flight access out of the country had resulted in corporate companies looking further afield for their overseas events, with many opting for Thailand.

Said Singh: “While our FIT business had grown 15-20 per cent year-on-year, the reverse is also true for our meetings and incentives sector (which decreased 15-20 per cent).”

Similarly, Raaj Navaratnaa, general manager at Johor Bahru-based New Asia Holiday Tours & Travel, has received many enquiries from incentive clients in Singapore looking at destinations such as Myanmar, Philippines and Vietnam.

Its inbound business from Singapore, on the other hand, dipped 30 per cent drop this year, a situation that was further aggravated by the haze in September and the recent ‘red shirt’ rally in Kuala Lumpur.

“A big meeting group of 600 pax from Singapore planning to have their meeting in Kuala Lumpur in end-September cancelled because of the rally,” said Navaratnaa. “They are instead going to Thailand.”

He added that the main challenge for Malaysia is a lack of new products to impress repeat corporate clients from Singapore, as upcoming attractions like the Twentieth Century Fox World Malaysia in Resorts World Genting and Movie Animation Park Studios in Perak will only open in 2016.

Read more reports from the ground in our IT&CMA and CTW Asia-Pacific 2015 Show Dailies.

Additional reporting by Michael Mackey

Tigerair makes leap into Fujian’s Quanzhou

By TTG Asia

September 30, 2015

Credit: Tigerair

TIGERAIR has launched thrice-weekly service between Singapore and Quanzhou in China’s Fujian province on September 28.

The flights will ply between the two cities every Monday, Thursday and Saturday aboard an Airbus A320 aircraft, with departures from Singapore Changi Airport at 10.30 and arrivals at Quanzhou Jinjiang International Airport at 15.15. Departures from Quanzhou take off at 16.15, arriving in Singapore at 21.00.

China is one of Tigerair’s largest markets by traffic contribution, with Quanzhou being the carrier’s 12th destination in Greater China. With the addition of the new route, the airline operates a total of 79 flights to China weekly.

To celebrate the launch, Tigerair is offering promotional fares to Quanzhou starting from S$329 (US$230.50) for a round-trip ticket.

Switzerland sees mixed performance from Asian source markets

By Rosa Ocampo

September 30, 2015

SWITZERLAND has elicited mixed performances from its Asian source markets this year, despite its active promotions there following the slowdown in its traditional European markets.

Hong Kong and China are the fastest growing, India is revving up following a slow increase last year while South-east Asia’s emerging markets are rising from a low base.

Casey Liu, Switzerland Tourism’s chief representative in Hong Kong and China, said overnight stays from Hong Kong has increased by 12 per cent so far this year from 2014, posting a “remarkable growth for a mature market”.

China, meanwhile, has grown more than 20 per cent so far this year, topping France as Switzerland’s fifth biggest market.

India grew 26 per cent in overnight stays in 1Q2015 after logging marginal growth of two to five per cent in the past few years.

“This is a really big step,” said Claudio Zemp, Switzerland Tourism’s director of India, adding that a majority of Indian travellers to the country are FITs.

Ivan Breiter, director of South-east Asia at Switzerland Tourism, said Singapore and Malaysia are “a bit slow” but are expected to post a 15 per cent gain within two years.

This year, Breiter expects Indonesia to post a 43.2 per cent growth, Thailand 31.1 per cent and the Philippines 24.3 per cent for a total of over half a million room nights from the region.

Myanmar Tourism Federation sets up rep office in Tokyo

By Sid Dhartha

September 30, 2015

THE Myanmar Tourism Federation (MTF) last week opened its second overseas representative office in Tokyo, following the launch of the first one in the US earlier this year.

“MTF now has a mutual agreement with the Japanese Public Diplomacy Association (PDA) with an aim to encourage the growth of Japanese travellers to Myanmar,” said Sai Kyaw Ohn, deputy minister at the Ministry of Hotels and Tourism Myanmar.

Phyoe Wai Yar Zar, joint secretary general at MTF and chairman of Myanmar Tourism Marketing, added: “By opening this office in Tokyo, we will promote destination Myanmar through PDA’s services.”

The move to attract more Japanese tourists to Myanmar is derived from MTF’s goal to support sustainable, long-term growth by attracting high-value, low-impact travellers.

“Japanese tourist arrivals are currently at 58,527 with a growth rate of 12 per cent so far this year. This means approximately US$1.8 billion of direct tourism income,” said Sai Kyaw Ohn.

According to MTF figures, international tourist arrivals from January to August this year reached nearly three million, a 50 per cent growth over the same period last year.

CVBs must safeguard interest of event owners: Grimmer

By Paige Lee Pei Qi

September 30, 2015

CVBs need to start seeing themselves as customer representatives instead of being “official mouthpieces” lest they start losing their credibility, said Gary Grimmer, CEO of convention industry consultancy GainingEdge.

Speaking to TTGmice e-Weekly on the sidelines of the ASEAN MICE Forum on Monday, Grimmer who is the former chairman of the board of the International Association of Convention & Visitors Bureau and former chairman of the Business Events Council of Australia, said: “I think a key (credibility) issue is that most CVBs are structured to be a representative (of their destination and suppliers). When CVBs represent the suppliers, they will always be protecting the supplier’s reputation regardless of the quality of service delivery.”

Providing an example of how CVBs can embrace the role of a customer representative, Grimmer said: “If I were representing a bureau, I would encourage people to visit my website and critique the supplier’s service level. It is only then will CVBs be seen as being more transparent and credible.”

He added: “Suppliers are going to get angry when they receive bad reviews but that is the only way to force them to improve their services, or risk going out of business.”

Hugo Slimbrouck, director of strategic partnerships with Ovation Global DMC, also lamented that CVBs were “not working sufficiently together” with the DMC community which he said were the real experts on the ground.

Sharing this opinion during the opening panel session of the ASEAN MICE Forum, Slimbrouck said: “Very often CVBs would have the whole event plan drawn up on their own, then approach the DMC for sponsorship or to be part of the programme.

“But I do not wait for the CVBs (to come to me); I do the opposite. I would organise the event and then go to the CVB and tell them to do something with what I have.”

Nevertheless, Grimmer underlined the importance of CVBs, saying that “they are vital as they are our hope to developing government support”.

Citing Singapore as an example of a country with a strong CVB, he added: “I like Singapore because it is an example of a modern nation with barely any natural resources. Singapore more than anybody else understands how vitally important it is to have conventions and exhibitions (contributing to its) economy.

“Singapore in general has a reputation for great service and (the Singapore Tourism Board) can continue to encourage radical transparency and move towards engaging communication with consumers beyond providing services to meeting planners.”

Additional reporting by Mimi Hudoyo

Malaysia stands to lose Indian events with MAS’ service cuts

By S Puvaneswary

September 30, 2015

MALAYSIA Airlines’ decision to halve frequencies of air services between Kuala Lumpur and Delhi to daily flights since September 1 had resulted in a loss of MICE business to Malaysia, said agents interviewed.

Suneet Goenka, group managing director of Red Apple Travel in Kuala Lumpur, declared the reduced frequencies “a disaster”.

He elaborated: “It is going to be very difficult to get MICE business from northern India where companies place great value on connectivity and pricing. Many Indian companies book last minute – three to four weeks in advance – and a hybrid carrier like Malindo Air will not give airfares in advance for large groups.”

Goenka revealed that some Indian companies had already removed Malaysia from their list of preferred destinations.

He also warned that reduced capacity on scheduled airlines would lead to higher airfares on the India-Malaysia sector.

Also impacted by Malaysia Airlines’ service reduction is Hidden Asia Travel & Tours in Kuala Lumpur. Its managing director, Nanda Kumar, said: “Many corporate companies in India want their staff to arrive on the same day. Due to this requirement which cannot be fulfilled through reduced frequency, we have lost a number of potential MICE businesses to other destinations.”

However, an agent from Delhi, Rajendra Dhumma, director of Classic Travels & Tours, has downplayed the effect, saying that the weakened ringgit is enough to keep Indian clients interested in Malaysia.

He said that “Malaysia (is) an even more attractive destination” due to the currency exchange in India’s favour.

“(Moreover) many companies in India have also cut spending and will opt to send employees on (cheaper) airlines like Malindo Air,” he added.

Amit Singla, managing director of Scotch & Water Innovations, Bangalore, disagreed. “Organisers who can pay for scheduled carriers will want a direct connection for their groups. The distance from Delhi to Kuala Lumpur is too short for one stop. The suspension of the morning departures from Delhi to Kuala Lumpur will also affect onward connections from Kuala Lumpur for business travellers from India.”

Dilip Masrani, managing director of Favourite Tours & Forex Gujarat, remarked: “Malaysia will lose out to other destinations once Twentieth Century Fox World Malaysia opens in 2016. This will be a very big attraction for the Indian market and will appeal to Indian business event delegates who often travel with their spouses.

“If organisers fail to secure enough seats to Malaysia for their groups, they will simply choose another destination that can offer better connectivity and airfares.”