Strong greenback, local economy spur US travel to Asia

us-dollar

SINGAPORE welcomed a record 500,000 US travellers in 2015 and the US market grew three per cent last year, according to the New York office of the Singapore Tourism Board’s (STB) Singapore Exhibition & Convention Bureau (SECB).

Kershing Goh, regional director, Americas, international group, of STB and SECB, said there was a 50-50 split between BTmice and leisure travellers.

Goh attributed the good showing to the strong US dollar and good economic conditions as well as SECB’s efforts in targeting US incentive groups and corporate travellers last year. But she noted that US outbound growth was more strongly driven by leisure traffic.

She said: “Every region in the world, including Asia, is seeing growth. China is a big magnet and US arrivals into Japan grew by double digits.

“The launch of United Airlines’ Boeing 787-9 Dreamliner direct non-stop service between Singapore and San Francisco on June 3, and the additional frequencies by Asian carriers such as EVA Air and All Nippon Airways would continue to open up opportunities to tap the US outbound market.”

“This year, we are ramping up efforts to promote leisure travel as well as business travel from Silicon Valley,” she added.

Kathryn Loh, general manager, destination management, inbound, SingExpress Travel commented that distance is still a major obstacle in cracking the US MICE nut, but observed business travel is increasing.

“United’s direct non-stop flight will help, but direct non-stop flights on Singapore Airlines from the US will be more critical in tapping and growing US meeting and incentive groups,” Loh said.

Aloysius Arlando, CEO, SingEx Holdings, added there has been a rise in US delegates at conventions and exhibitions held at its venue in the last two years, in particular for sectors such as aerospace and aviation, IT and healthcare. He added that the number of US delegates attending MRO (Maintenance, Repair Overhaul) Asia increased between 10 and 12 per cent.

“US business travellers are coming to Singapore to explore establishing an office or R&D base to springboard to other parts of the region,” he said.

Arlando noted that while “larger US SMEs wanting to break into the Asian market will find Singapore a good entry point”, Singapore players must be industry focused to tap the US market.

He elaborated: “Asia is now part of a number of mega MLM (multilevel marketing) events with up to 12,000 participants and for the big achievers, money is no object. Of those numbers, some two to three per cent of attendees are from he US headquarters who also make follow-up business development trips and to seal new business.”

Arlando observed the last “spike” in US BTmice numbers was in 2007/08 before the global financial crisis.

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