THE ringgit may have fallen in value against major currencies since one year ago, but the longhaul incentive business to Europe is stronger than before despite predictions of a drop in business this year.
Kelvin Ong, general manager of Aviareps Malaysia, which represents Chic Outlet Shopping in Europe, said there has been a 30 per cent year-on-year increase in MICE business from Malaysia to Chic Outlet Shopping facilities across Europe in 1Q2015.
He elaborated: “Some companies that postponed their trips in 2014 because of the aviation disasters last year fulfilled them in 1Q, while others chose to travel in 1Q before the government implemented the GST on April 1.
“We’re also forecasting a minimum of 25 per cent growth in the number of business events from Malaysia to Chic Outlet Shopping in 4Q.”
Premium Incoming’s managing director, Peter Javorkai, who is based in Budapest, said growth from Malaysia, Singapore and Indonesia is skyrocketing, and incentives from these markets usually combine Prague and Budapest in an itinerary ranging from four to six nights.
He added that the weak ringgit is not impacting demand from companies in the insurance, banking, automobile and telecom industries.
Both Aviareps Malaysia and Premium Incoming were exhibitors at a MICE roadshow in Kuala Lumpur yesterday, organised by Sette Reps and sponsored by Etihad Airways and Chic Outlet Shopping.
The roadshow also saw representation by DMCs in other markets, including Russia, which has been pegged as an increasingly popular incentive destination.
Fernando Tome, general director of Russian DMC GoingRussia, described demand from South-east Asia as “going up strongly” especially among corporates that have already done incentives in other parts of Europe.
Agreeing, local outbound travel agency, BMC Travel’s sales director – outbound, Esther Loo, credited this to the increasing number of flights to Russia.
“Middle Eastern carriers such as Etihad and Emirates with their direct connections and large seat capacities have made it possible to do incentives to Moscow, and combine it with St Petersburg for medium sized groups.
“Sectors such as insurance and direct-selling companies are always looking for new destinations in Europe to reward their top-tier qualifiers.”
