Chinese MICE demand dips for Malaysia

MALAYSIAN inbound MICE operators specialising in the Chinese market have reported many booking cancellations from April onwards, as search for the missing Malaysia Airlines’ (MAS) flight MH370 continues, more than a month after the plane lost contact.

The flight, bound for Beijing International Airport, had 239 people on board including 153 Chinese nationals.

Local and international news media have reported growing frustrations among the Chinese over the Malaysian authorities and airline’s handling of the investigations and communications, and a rise in netizens’ call to boycott travel to Malaysia and its products.

Winnie Ng, business development manager at Pearl Holiday (M) Travel & Tour told theDaily that she has so far received seven cancellations from China for meetings and incentives planned for April to June, with group sizes of 150 to 500 delegates.

Ng added: “Some Chinese MICE organisers who cancelled their events in Malaysia said it was because they did not want to fly on MAS while others did not give a reason. Some bookings have gone to South Korea.”

Waning interest from China was also reported by Billy Leong, managing director of BMC Travel, who said two pharmaceutical meetings from Beijing this month were cancelled while new bookings were “coming in very slowly.”

Mayflower Acme Tours general manager, Andy Soo, said: “We have had quite a number of cancellations from China since March. At this point, we cannot tell for sure if it is because of negative sentiments that resulted from the missing MAS flight. Cancellations are common but this time around, it is about 10 per cent higher than usual. The number of new enquiries from China have also softened.

“We will send a team to China soon for a sales visit to meet with MICE planners and operators to acquire first-hand knowledge of what is happening, their plans for the coming months and to gauge sentiments on Malaysia.”

Malaysia Convention and Exhibition Bureau has declined to comment on the cancellations and slowdown in new enquiries from China and what it intends to do to restore Chinese confidence in Malaysia.

Singapore, which is occasionally featured in a twin destination programme with Malaysia, has also seen changes in the preferences of Chinese incentive groups.

Sharing the observation with the Daily, Alicia Seah, marketing communications director of Singapore-based Dynasty Travel, an agency which handles inbound and outbound leisure and corporate events, said some Chinese incentive clients had recently chosen to drop day trips to Malacca from their Singapore-Malaysia itineraries.

Seah, whose company is handling two Chinese incentive groups this month, said: “Our Chinese travellers prefer to stay only in Singapore now, and some have opted to cut short their programme because of the (incident).

For Chinese clients who are interested in extending their programmes from Singapore, Seah said Bintan in Indonesia is getting their attention now.

Other inbound MICE operators in Asian destinations who have witnessed upticks in Chinese bookings this month are, however, not crediting it to a diversion of interest following the MH370 incident.

Raymond, managing director of MG Holiday Indonesia, said: “There has been growth in Chinese MICE bookings to Jakarta for corporate meetings and exhibitions, but I believe that has more to do with growing interest in Indonesia (as a trade market) than (Chinese shifting destination choices from Malaysia to Indonesia following) the aircraft incident.”

Additional reporting by Paige Lee and Mimi Hudoyo.

For other stories, go to TTG Official Daily – IT&CM China 2014

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