Firms are relocating younger employees, and serviced apartment operators are responding with new products.

Lanson Place Hotel, Hong Kong

3 hottest relocation cities in Asia now and why
Hong Kong, Singapore and Shanghai are still the hottest Asian cities to relocate to, despite capital investments trending outward from these cities.

Considered the gateway to China, Hong Kong consistently offers an exciting city for expats: easy to reside in, great to establish business networks and very family friendly. Within the past 10 years, the city has seen a 50 per cent growth in the extended stay market.

Global MNCs will also easily consider relocating their employees to Hong Kong’s friendly neighbouring competitor cities though, specifically Singapore or Shanghai.

Singapore saw a 30.4 per cent increase in serviced apartment supply last year and is perceived to be a city as easy to move to as Hong Kong. Shanghai continues to boom; although serviced apartment inventory have quadrupled in the past four years, occupancies are still in the 80 per cent levels. We have just announced our fifth property there.

Aside from these three established key cities in Asia, Lanson Place residents are also relocating to other prime cities such as Kuala Lumpur, Bangkok, Jakarta and Manila. Most offer more affordable living, but are also exciting up-and-coming business destinations.

What’s trending
We’ve seen a shift in resident demographics throughout all our properties in Asia-Pacific, mostly in the past two years. With advanced technology, Millennials are signing shorter-term tenancies, wanting to do conduct business faster and more efficiently. Baby boomers and Gen X are residing without families, while younger families are seeking smaller and more versatile units.

More significantly, residents who have been educated abroad are coming back to their own countries and relocating from within the Asia-Pacific region. In China, corporations are expanding their companies to second- and third-tier cities but are still seeking a comfortable yet affordable lifestyle for their employees.

How operators match changing trends
Lanson Place has specifically introduced a third business model called Serviced Suites by Lanson Place to address the changing trends and needs of corporates relocating.

This lean, efficient and contemporary serviced apartment style not only provides a higher return in investment for developers but most importantly offers residents a niche lifestyle, no matter the location or purpose of their residency.

Smaller units are creatively designed with unique combined open living and working spaces; public areas are the extension of their homes offering seamless connectivity throughout the entire development; ‘grab n go’ F&B concepts and energising activities promote well-being. This model forms the majority of pipeline deals for Lanson Place, be it in secondary locations in key gateway cities or 1.5-tier cities within China.

Fraser Residence Kuala Lumpur

3 hottest relocation cities in Asia now and why
Singapore – the world’s number one city for business friendliness – remains one of the hottest business destinations in Asia. A key gateway city for the South-east Asia market, it is known for its open-trade environment, corruption-free government and high quality of living, attracting large MNCs pursuing business opportunities in the region.

Kuala Lumpur has become an increasingly attractive business destination particularly for global manufacturers, offering lower tax and stricter intellectual property protection regimes, in comparison with other markets like China. It is ranked among the top 15 countries most favoured by MNCs in 2014-2016 with various government incentives for foreign companies geared towards making Malaysia a gateway to the ASEAN market.

Ho Chi Minh City and Hanoi have also been successful in attracting foreign investment, quickly becoming an important market for companies looking to expand into second- and third-tier cities in Asia. Some of our residents who have completed their assignments in Jakarta have been relocated to Vietnam to take on new assignments.

What’s trending
We have observed that overseas assignments are increasingly shorter, on a more regular basis of between two weeks to a month, as opposed to the previous trend of longer assignments of up to three months at a time. Younger executives are being deployed for overseas assignments and as such there is also less need to accommodate an entire family. These, plus the increased overall appreciation of the advantages of serviced apartments, have contributed to the rising adoption rate of our serviced apartments in general and the one- and two-bedroom apartments in particular.

Most companies also now offer staff flexi-benefits packages as a measure to improve cost efficiency, where expatriates have the option of cashing in on their allocated accommodation expense if it is not fully utilised. This has led some expatriates to either opt for more affordable alternatives or shorten their length of stay.

How operators match changing trends
Plans are in place to further boost our inventory in these three cities as part of our goal of achieving 30,000 apartments units globally by 2019.

With the trend of shorter stays in mind, our newer properties have been configured with a larger number of one- and two-bedroom apartments to cater to more business executives who now tend to travel on their own, while at the same time maintaining the spacious defined living, kitchen, bedroom and study areas our serviced apartments are known for.

We also work closely with our corporate clients to better understand their evolving needs and customise solutions to complement their travel and relocation policies.

Oakwood Residence Sukhumvit, Thonglor Bangkok

3 hottest relocation cities in Asia now and why
Both Singapore and Hong Kong lead the relocation markets in Asia-Pacific as they continue to serve as business hubs for multi-national organisations.

As one of the fastest-growing economies in the region, China is also a key relocation market. Encouraged by the Chinese  government’s opening up and increased pace of reform, more companies are establishing operations in China’s emerging cities in the mid-west. This trend, combined with the increased demand for serviced apartment in primary cities such as Beijing and Shanghai, is stimulating new serviced apartment projects, resulting in rapid development and progression across China.

Oakwood Worldwide has an aggressive expansion plan for China, with a second property in Beijing and one in Sanya and Haikou in the pipeline. We have also expanded our Asia-Pacific operations with the opening of an office in Hong Kong to meet the increased demand for serviced apartments in the region.

What’s trending
Some of the key trends we have noticed in the global mobility industry:

• An increase in short-term assignments as companies look to plug skills gaps, contain costs and appeal to younger workers who want to broaden their experience.
• A drop in the average age of assignees – in 2014, the 30-39-year-old age bracket had one of the highest percentages of international assignees (33 per cent), taking over from the 50-59-year-old age bracket, as reported in the 2014 Brookfield Global Relocation Trends Survey.
• Continued growth in the number of assignments in Asia-Pacific due to the increase in business travel.
• The growth of emerging markets as companies continue to broaden their reach and send assignees as project work increases.

How operators match changing trends
Oakwood Worldwide has a four-pronged approach in preparing to meet the needs that will result from the aforementioned trends:

• Robust development strategy in Asia-Pacific: Oakwood Worldwide is looking to double our current Asia-Pacific branded portfolio of 28 properties over the next three to five years.
• The launch of a hotel desk at the end of 2014 to give clients access to accommodation in smaller and remote cities where serviced apartments are not as readily available. This also provides flexibility for short to medium, and long-term stays.
• Strengthening our vetted supplier network: In Asia-Pacific, Oakwood Worldwide offers more than 400 properties across the region through local network partners.
• Evolving business model: By using Lanyon to contract rates from serviced apartment providers and hotels, we help organisations save time and resources, offering greater efficiency throughout the relocation.

Ascott Kuningan Jakarta

3 hottest relocation cities in Asia now and why
Indonesia, the Phlippines and China.

Indonesia is the biggest economy in South-east Asia while the Philippines’ strong economic fundamentals continue to attract foreign investors, in particular the back-office processing operations sector.

In China, demand for serviced residences remains strong in the first- and second-tier cities of Shanghai, Beijing and Guangzhou.

Given the strong economic potential of Asia, we will continue to deepen our presence and grow our network in Asia. We have expanded Ascott’s presence in key cities such as Jakarta, Manila and Shanghai with the opening of Ascott Kuningan Jakarta, Ascott Bonifacio Global City Manila and Ascott Heng Shan Shanghai in recent months.

What’s trending
With increasing talent mobility, our serviced residences continue to receive many guests who stay for an extended period of a month or more for relocation or project assignments.

As travellers get savvier and companies tighten their travel budgets, they recognise the value that serviced residences provide as compared with traditional hotels.

They appreciate the flexibility for project team members to share an apartment while enjoying the privacy of individual bedrooms and the convenience of a kitchen.

Younger executives are seeking smart living that integrates work, rest and play, as well as unique, personalised and authentic local experiences when they are overseas.

Staying healthy while on the move is also a trend.

How operators match changing trends
By constantly innovating and looking at new ways to delight guests.

Ascott is the first global serviced residence company to embrace smart home technologies. We have forged an exclusive partnership with Samsung Asia to jointly develop smart solutions customised for serviced residences. Guests will be able to use their mobile or wearable devices to control washing machines, refrigerators, smart TVs and the like.

We aim to test-bed the technologies at selected Ascott serviced residences by the first half of 2016, with plans to roll out to our properties worldwide in phases.

We have also launched the Ascott Lifestyle programme, offering guests bespoke cultural, gastronomical, local and wellness experiences.

For instance, to help guests settle in a new city, there are local language classes and guided tours of the local market. Guests can stay fit by exploring the neighbourhood they are in with our customised jogging routes.

There are also cultural programmes such as batik making workshops and personal cooking sessions being conducted right in their apartment.

This article was first published in TTG Asia, September 18, 2015 issue, on page 13. To read more, please view our digital edition or click here to subscribe.

To grow Kazakhstan as a tourist destination, the NTO first needs to raise awareness of the country’s myriad offerings, writes S Puvaneswary

Tourism is still a nascent industry in Kazakhstan, contributing about 1.5 per cent of the country’s GDP. The Central Asian nation received 6.4 million tourist arrivals last year, a slight drop from 6.8 million in 2013.

In July 2014, the Kazakh government introduced a year-long pilot programme to offer visa-free entry for 10 countries, namely France, Germany, Italy, Japan, Malaysia, the Netherlands, South Korea, the UAE, the UK and the US. Kazakhstan recently extended the scheme by another year to 2016.

To grow inbound tourism and reduce tourism trade deficit – outbound travel currently exceeds inbound travel by US$500 million – Kazakhstan added 10 more countries to its visa-free facility in July this year, extending the scheme to include Spain, Belgium, Hungary, Monaco, Singapore, Australia, Norway, Sweden and Finland.

“Eventually, Almaty will also include all OECD countries into the programme, though these markets will be brought on board gradually,” said Timur Duisengaliyev, director of the Tourism Industry Department.

Alicia Seah, director, marketing communications at Dynasty Travel in Singapore, said: “With the visa waiver, we are hopeful it will attract Singaporeans, many of whom are well-heeled travellers and enjoy off- the-beaten-track destinations. While our company sells packages to Uzbekistan as a mono destination, we will consider coming up with new packages combining Uzbekistan with Kazakhstan.”

Lack of destination awareness
To reduce an over-dependence on travel trade shows and consumer travel fairs, the Tourism Industry Department wants to set up marketing representation offices in key overseas markets. Currently, there are no such offices.

Duisengaliyev said: “We need to have a constant presence in key markets. It is not enough to just attend trade shows.”

The NTO is keen to open marketing representation offices in China, India, Russia and Germany by this year-end, as these countries have the capability to “generate high volumes of inbound tourists” for Kazakhstan, said Duisengaliyev.

The trade also wants the Kazakh government to do more to promote the country overseas.

Holiday Inn Almaty’s general manager, Douglas Winfield, said: “The government must come up with a clear marketing strategy to win more leisure tourists. Relaxing visa for certain markets is a great initiative, but the government must also work with the private sector to drive tourism.”

Added Saya Okas, marketing manager at Shymbulak Ski Resort, where only a quarter of its 500,000 visitors each year are foreigners: “The perception among tour operators and international tourists is that the country has nothing to offer. This is mainly due to a lack of awareness.”

Abdul Rahman Mohd Ali, group CEO of Poto Travel & Tours Malaysia said the 15-day visa-free entry for Malaysians and direct flights between Kuala Lumpur and Almaty has aided the selling of Kazakhstan to a certain extent.

He opined: “However, it will be easier to promote the destination if the Tourism Industry Department assists in joint destination promotions and marketing support for (consultants). Kazakhstan – and Central Asia as a whole – is still a new destination for Malaysians and breaking into this new market is not as profitable as selling established markets such as Central Europe.”

Golden Tourworld Travel Malaysia’s 15days/13nights Central Asia package, which combines Kazakhstan, Kyrgyzstan, Uzbekistan and Turkmenistan, uses Almaty as a gateway with Air Astana’s thrice-weekly flights from Kuala Lumpur.

Said the company’s marketing manager, Christine Ker: “We would consider extending stays in Kazakhstan if the Tourism Industry Department offers more consumer promotions to Malaysians and provides us with marketing support and product updates.”

Air Astana as key driving force
A key driver of the Kazakh tourism sector is Air Astana, a joint venture between the country’s national wealth fund, Samruk Kazyna, and BAE Systems, with shares of 51 per cent and 49 per cent respectively.

Peter Foster, president of Air Astana, laments that the government has neither a clear strategy to attract international tourists nor joint marketing promotion efforts with the national carrier and the NTO, unlike other countries in Asia-Pacific.

On its own, Air Astana works in close partnership with The Ritz-Carlton Almaty to jointly host fam trips for foreign travel consultants. The airline is heavily dependent on travel consultants as agencies make up 90 per cent of seats sold.

“Year-round, the average load factor of Air Astana varies between 65 to 68 per cent year-on-year, (offering) plenty of opportunities for (travel consultants) in Asia to sell Kazakhstan,” said Richard Ledger, Air Astana’s vice president, worldwide sales.

However, he acknowledges that the airline and the destination are not well-known for longhaul markets such as South-east Asia, thus organising fam programmes and offering special rates for preferred consultants to sell Kazakhstan packages at consumer travel fairs are important.

Urging Air Astana to work closer with the trade, Gulnora Khamidova, managing director at GM Travel House in Kuala Lumpur, said: “Otherwise, (consultants) will work with other Central Asian carriers such as Uzbekistan Airways which offers competitive rates to (consultants) or Turkmenistan Airlines which also has direct flights to Kuala Lumpur.”

To attract transit visitors through Almaty and Astana, Air Astana Stopover Holidays is a pre-paid programme which includes transfers, hotel accommodation with breakfast, city tours and seasonal free tours – such as skiing in winter and mountain biking in summer.

This article was first published in TTG Asia, September 18, 2015 issue, on page 6. To read more, please view our digital edition or click here to subscribe.