Major attractions are open, the US is open to tourism. But are Asian outbound tour operators raring to go, even as Brand USA steps up training and marketing?
Source: Raini Hamdi
The US had its biggest presence ever at ITB Asia last month. For many of the players, including Brand USA, it was a first appearance, an indication of a new keenness to tap Asian outbound markets.
After a hiatus, where every other major destination in the world stepped up tourism marketing as competition for tourist dollars rises, the US is back in the game. And how. It is aiming for a 50 per cent leap in international arrivals to 100 million in 2021, from the 67 million foreign visitors recorded last year. Long-standing visa issues and long immigration queues aside, Brand USA – the first public-private sector umbrella to promote visitorship to the US – has its job cut out for it.
Brand USA vice president for global partnership and development, Jay Gray, admitted: “Between 2000 and 2010, international outbound travel across the world increased immensely but US market share of that actually decreased five percentage points in what we called the ‘lost decade’”.
Gray attributed this to the destination’s lack of marketing efforts, while other countries were out there marketing themselves as tourism destinations.
International visitors account for a disproportionate amount of spend in US cities. While they make up 20 per cent of travellers to New York, they contribute 50 per cent of receipts. In the state of Florida, foreigners comprise 14 per cent of visitorship yet create 36 per cent of spend.
Asia is key. Said Gray: “Japan will surpass the UK as top source market by the end of this year, and by 2018, China will be.
“We expect between five and 10 per cent growth from markets out of South-east Asia.”
But he noted: “Travellers and consultants here are not as informed about the product as they could be,” he said.
To tackle that, Brand USA will launch an online education and certification programme for South-east Asia’s trade in 1Q2014.
Developed in the UK, it has been localised for the Indian and Australian markets, and there are plans to further translate and launch the programme in other languages.
“This is about creating a community of operators with a social element, so when somebody logs into this, completes a module, his rankings increase. Then when he goes on one of our fam trips, upload his experiences online, his rankings increase more,” he said.
The trade can also expect co-op programmes that could extend to campaign funding.
Said Gray: “For (tour operators) buying advertisements or promotions around US products, we want to help them, may be in terms of bringing partners to the table that they may not have already talked to, unique itineraries or just putting additional funds into campaigns.”
Partners are keen. Brand USA, which rounded up destinations and sellers from the US to exhibit at ITB Asia, sold out the pavilion space quickly. “We could have had twice the footprint on the show floor,” said Gray.
Exhibiting under the Brand USA pavilion were ITB Asia veterans such as Las Vegas, but also first-time sellers such as Grand Canyon West, which privately owns part of the Grand Canyon, VisitFlorida and NYC & Company.
Makiko Matsuda Healy, vice president, tourism development of NYC & Co, said Asian travel consultants could make use of the city’s online education programme for the trade, which comprises seven modules in various verticals.
Upon completion, the consultants becomes a certified NYC Specialist and will receive discounts at attractions, hotels, etc, when visiting the city.
Rubern Bala, managing director of SR Holidays Singapore, which handles mostly corporate travel, said he is looking to get back into the leisure game and sell customised packages.
Bala said there will be demand for the US because of airlinks such as Singapore Airlines’ non-stop flight to Los Angeles, although he added that the exchange rate will play a big part.
Han Songnan from the outbound tourism American department of CTS Travel Beijing, said his company sends between one and two groups a month to iconic US cities such as New York, Las Vegas and Los Angeles.
He said there is interest in the US. “Those who have been there want to go again, but those who have not may take a while to adjust to (the idea of) prices there, as things are more expensive.”
Han added that it is hard to predict what will be the up-and-coming destinations in the
US, as prices of air tickets and hotels weigh a lot in the decision.
Visas meanwhile remain a key concern. Srauy Virith, managing director of Senses Journeys Travel in Phnom Penh, said: “I’m planning to sell US tour packages but it’s hard to get visas. A lot of people want to visit, but even if you have the money, you can’t get the visa.”
Reene Ho-Phang, Brand USA’s managing director-Taiwan & Hong Kong, said: “After coming (to ITB Asia), we realise we have to add two more destinations (on the South-east Asia focus list) – Vietnam and Myanmar. They want to talk to our suppliers and are trying to reach out to us.”
Meritage seeks more Asian guests
SAN DIEGO-based Pacific Hospitality Group has debuted its Meritage Collection at ITB Asia to garner more international guests for its properties. Launched early this year, the collection comprises Trinitas Cellars winery and four AAA Four Diamond properties (equivalent to four- and four-and-a-half stars) – Balboa Bay Resort on Newport Beach, Bacara Resort & Spa in Santa Barbara, The Meritage Resort and Spa in Napa Valley and Estancia La Jolla Hotel & Spa. David Gerdes, Pacific Hospitality Group’s vice president sales and marketing, said there are no other hotel operators that offer Four Diamond facilities in those destinations. “There’s more to California. Let’s move away from the big cities and provide customers not only in the US but around the world a chance to enjoy the activities and amenities at these four locations,” said Gerdes. With all four properties populated mostly by domestic travellers, a market that has only just begun to recover, the group engaged Miami-based Unique Hotel Solutions to help tap the global market and unveiled the Meritage Collection for the first time at International Pow Wow in Las Vegas in June. Asked if hotels in the Meritage Collection featured amenities specifically catering to the Asian market, Gerdes said such services will be gradually introduced as Asian visitors start coming. “It’s a catch-22 right now because we’ve got to see those travellers coming and we will. We’re confident that after ITB Asia we will have those amenities available for the different countries and their travellers.” The Meritage team sees ITB Asia as a springboard for learning more about Asian consumers, then doing further promotions in the region. Said Gerdes: “Asia is our key market. We want to learn exactly what the Asian consumer is looking for so we can operationally work it out and serve them.”
This article was first published in TTG Asia, November 15 – 28, 2013 issue, on page 8. To read more, please view our digital edition or click here to subscribe.
