Asia’s integrated resorts are polishing their lifestyle facets and keeping them preened and Instagram-ready for millennials, as the younger generation becomes a potent consumption force. By Paige Lee Pei Qi, Rosa Ocampo, S Puvaneswary and Prudence Lui

From left: Sands SkyPark at Marina Bay Sands; Soak Out Water Party at Universal Studios Singapore

Integrated Resorts (IRs), typically associated with casino-goers and families, are increasingly responding to millennial preferences. While IRs have different strategies to court this lifestyle-sensitive group, they can all agree that photogenic food, dynamic events and digital messaging are ways to the hearts of millennials.

Lures in F&B
“Dining is at the core of millennial culture today. With over 80 dining options across Marina Bay Sands (MBS) – from casual bistros along the waterfront promenade, to al fresco lounges atop the Sands SkyPark – we (aim to) satisfy this group who are always on the prowl for unique culinary experiences,” a spokesperson from MBS said.

“They also appreciate finer details when it comes to dining, from hospitality, finishing touches to the restaurant’s decor, right up to the produce that goes into what they eat,” the spokesperson added.

Similarly, a Resorts World Sentosa (RWS) spokesperson told TTG Asia that the newly earned Michelin stars at four of its restaurants, along with the Curate initiative (which features visiting Michelin-star chefs), appeal to millennials seeking the latest food trends and fine dining by renowned names.

Resorts World Genting (RWG) recognises the traction that international names and local cuisine have with millennial visitors. A spokesperson stated that established global brands at its new SkyAvenue mall such as Burger & Lobster and Motorino are popular with millennials, while those seeking authentic food and culture will enjoy its newly-opened Malaysian Food Street.

An event-loving crowd
RWG also holds regular activities such as concerts, live shows and festive promotions to attract millennials, which has gotten the thumbs up from Ally Bhoonee, executive director at World Avenues Travel & Tours.

“RWG has done the right thing by upgrading and refreshing their products. This will encourage repeat visitors and new ones, especially millennials who also form a key age group that Malaysia wants to attract,” Bhoonee said.

Also keeping entertainment offerings fresh is RWS in Singapore. A spokesperson said the resort “strives to create new, exciting and adrenaline-charged experiences across its attractions”.

Recent examples include the Soak Out Water Party, Halloween Horror Nights 7 and Santa’s All-Star Christmas in Universal Studios Singapore.

And at Resorts World Manila, its three bar and restaurants last November offered paid live viewing of the hyped boxing match between Filipino boxer Manny Pacquiao and welterweight champion Jessie Vargas.

Going digital
Where millennials are concerned, products may be key, but many IRs acknowledge that these are best taken advantage of when combined with digital strategies.

Samson Tan, CEO of GTMC Travel: observed: “We see IRs (using social media and technology). They are increasingly leveraging various social media tools to promote the latest offerings and drive the millennial crowd in.”

Indeed, through social media, MBS found that it has gained “strong clout over consumers’ decision-making process”, using “compelling imagery, trend and style tips, or content to win prizes” to connect with mobile-savvy millennials.

The potential doesn’t end there, as social media opens up opportunities for user-driven, organic and viral marketing.

“Being able to re-share our followers’ posts is a powerful means to empower them and encourage even more user-generated content – which in turn amplifies our share of voice in the world of social media,” said the MBS spokesperson.

Likewise, RWG was recently shown the power of viral marketing. It collaborated with ESL and provided the Arena of Stars as the venue for the ESL One Genting e-sports tournament (January 6 to 8), which “went viral” on social media and attracted 10,000 people, many of whom were millennials.

Charisse Chuidian, vice president – public relations, at City of Dreams (COD) Manila admitted that millennials are not a main target for its gaming facilities, but with some innovation and creativity, strategies can still be devised to engage this mobile-savvy segment and tap their influence.

“Millennials do play a role in spreading awareness for our hotel, restaurants and entertainment marketing. They are a great segment for brand awareness and we regularly offer online promotions to leverage on their ‘snap-happy’ market behaviour.”

The same applies for traditional gaming entertainment, as Chuidian highlights a millennial-targeted initiative to co-market the City of Games mobile app. The Slots and Baccarat mobile game allows players to earn real-world rewards that can be redeemed in COD Manila, COD Macau and Studio City.

For Sands China, which operates The Venetian Macao, Sands Macao and Sands Cotai Central, branding and marketing tends to be “more mass market”, a spokesperson said.

“We periodically undertake paid social campaigns for certain entertainment events/concerts if millennials are identified as a key market, but this is rare,” a spokesperson added.

Beyond promotions, RWS also caters to tech-savvy millennials with new payment modes. “Chinese visitors can make fast, secure and contactless mobile payments using Alipay – China’s largest mobile payment provider and global lifestyle app – at more than 200 RWS locations.”

Theme parks not exempt
Even IRs that have been chiefly appealing to the “young and young at heart” are not spared from keeping up with millennial trends.

Sean Choo, general manager of Sunway Lagoon, said: “Millennials travel solo or in small groups and do their research online before visiting a destination – it is important that we are ‘seen’ in all the online channels that millennials use to access information.”

He added: “We invite key opinion leaders such as bloggers, celebrities and artistes to visit our park, share their experiences and promote our brand… they have an influence on the decisions millennials make when choosing a holiday destination or place to visit.”

Not losing sight of more conventional tactics, Choo said the theme park – which is located close to a number of universities – have packages (e.g. Quacktastic Tuesdays and Terrific Thursdays) – to attract the price-sensitive student market.

As well, RWG expects its upcoming Twentieth Century Fox World theme park will be a “definite crowd puller, 
particularly among youths” when it debuts in 2H2017, the resort’s spokesperson stated.

This article was first published in TTG Asia March 2017 issue. To read more, please view our digital edition or click here to subscribe.

Hoteliers in the Maldives are having a harder time filling up rooms amid a surge in new hotel openings and slowdown in arrival growth. Feizal Samath reports

A flurry of new resorts opening in the Maldives in recent years has brought new challenges to the lucrative tourism industry, as a supply glut outstrips demand and visitor arrival growth to put pressure on room revenues.

The accommodation supply has been steadily growing for the Indian Ocean nation. From 108 resorts and 23,936 beds in end 2015, the number of resorts in operation totalled 117 with 26,557 beds by end 2016. As well, there are nearly 400 registered guesthouses with a total of 5,600 beds as of November 2016.

“The ADR is significantly low and continues to drop. Resorts are not making money,” said a senior manager at a local resort chain, who declined to be named.

He added: “The influx of tourists three years ago has dissipated while the rooms to match that (earlier) demand are only now coming on stream.”

Nearly 1.2 million arrivals were recorded in January-November 2016, up 4.6 per cent from the same 2015 period. This presented a sharp picture of contrast from the double-digit growth three years ago when the one million arrivals in January-November 2013 translated into a 17.8 per cent hike from the same 2012 period.

This growth slowdown comes as no surprise to Mario Hardy, CEO of PATA. “When I ask friends and family members about the Maldives, the following words comes to mind: beautiful island paradise, turquoise water and expensive. I am not surprised that the country is witnessing growth of only three to four per cent because these words could represent any number of island destinations – some of which are very close by,” he remarked.

Still, Maldivian deputy tourism minister Hussain Lirar believes it is not all gloom and doom for a destination that remains aspirational for many in the region.

“Too many beds? I don’t think so. In fact, in December there was a shortage of rooms,” he said, while conceding that more destination marketing may be required when newer properties launch.

Abdulla Ghiyas, president of the Maldives Association of Travel Agents & Tour Operators, also maintains that an increase in promotional budgets will help the destination ride out this oversupply storm as well as the political uncertainty that has embroiled the country in recent times.

While political instability has led arrivals from China, the country’s largest source market, to tumble 10.2 per cent to 308,077 in January-November 2016, Krishan Balendra, executive director at Colombo-based John Keells Holdings, which owns three Maldivian resorts, expects a swift recovery from the Chinese market. “Some markets like China are very sensitive to political developments,” he said.

Industry players remain sanguine of the Maldives’ prospects. Thomas Meier, senior vice president operations-Asia at Minor International, said: “In the tourism industry it’s not unusual to see growth cycles. The Maldives has experienced a number of years of continued growth, so it’s certainly not uncommon to see a softening of the market,” he said.

Likewise, Shabeer Ahmed, chairman of Coco Collections, opined that falling room rates and occupancies over the last two years are just part of a cycle that every business experiences.

The key for owners, he stated, is to prepare the right strategy when the business cycle improves, adding that there is good reason to believe that the market for the Maldives is growing.

Looking ahead, new names entering the hospitality scene this year include Four Seasons Private Island Maldives at Voavah, the world’s first exclusive-use UNESCO hideaway on a secluded island with just 22 rooms, as well as the newly opened St Regis Maldives Vommuli Resort and Hurawalhi Island Resort (see page 26), all of which are expected to enhance the destination’s strength in commanding a premium upwards of US$1,000 a night at top resorts.

The destination also attracted a record number of 40 private jets in December, carrying the likes of superstar David and Victoria Beckham for their New Year’s Eve party in the Maldives.

Unfazed by the room influx, John Keells Holdings’ Krishan thinks that new resort openings will, on the contrary, instil further market confidence in the tourism sector. “It also ensures the incredibly high level of standards at the resorts,” he said. “Competition is healthy.”

This article was first published in TTG Asia March 2017 issue. To read more, please view our digital edition or click here to subscribe.

Despite its rich cultural and natural offerings, negative perceptions of Mindanao as a conflict zone remain a major roadblock for its tourism ambitions, finds Rosa Ocampo

Mindanao, the southernmost  major island in the Philippines, still remains sidelined by tourists due to safety and security concerns, but the trade feels this stigma stems from misinformation and seeks concerted efforts from the government and private sector to overturn the negative perception.

The foremost issue lies in addressing the prevalent safety and security concerns, stated Angel Ramos Bognot, president and managing director of Afro Asian Travel and Tours, and suggests Mindanao to take a leaf from Palawan’s book.

Rocked by a high-profile kidnapping at one of its resorts in 2001, Palawan has recovered from the incident and gained global renown as a premiere beach destination after giving focus on security measures put in place, she added.

As well, Ramos Bognot added that Mindanao should have highlighted the Japanese prime minister’s recent visit to Davao as well as the authorities’ preparedness for emergencies and safety measures that were implemented.

Although Rajah Tours offers tour packages to Davao, Cagayan de Oro and Siargao, its president Jogo Clemente sees “trepidation from some partners as their governments have travel advisories issued against Mindanao”.

Therefore, besides the need for the authorities to establish peace and order in Mindanao’s troubled spots, Clemente also underscores the vital role of the private sector.

“Mindanao has had its troubles and this is the biggest obstacle in offering it as a viable tourist destination. To change that perception, it is important to highlight what’s good about it and play up its attractions,” said Clemente.

“We must do a better job of explaining (to clients and partners) where these safe and enjoyable places (in Mindanao) are in contrast to where the troubled areas are,” he elaborated.

For Luxus Pacific Travel and Tours, which has not been getting clients to Mindanao, reservations manager Jovy Caldejon remarked that it would help if media reports about the island were less sensationalised and indicate that the violence usually takes place far away from the cities.

While not denying that certain areas of Mindanao had suffered from war and violence, a greater part of the island boasts unspoiled natural beauty, a multicultural society and rich heritage, but the island’s development was neglected by the central Philippine government in the past due to its geographical distance from Manila, a trade member pointed out.

Although Mindanao’s stigma has also affected peaceful areas nearby, such as Davao, that looks set to change as both Philippine president Rodrigo Duterte and tourism secretary Wanda Tulfo Teo hail from Davao, priority is finally being given to build infrastructure and promote Mindanao.

Meanwhile, Butch Blanco, tourism director of region IX in western Mindanao, has plans to develop Zamboanga, Dipolog and Dapitan as new tourism hubs by rolling out initiatives such as putting security personnel on alert to assure travellers that the areas are safe, building connectivity to Manila and improving airports.

As Mindanao is home to a sizeable Muslim population, Ramos Bognot feels that the Middle East and neighbouring Muslim countries can be developed as primary source markets for the destination. Europeans too will also make a good market to invest in as they are interested in culture, cuisine and beaches, something Mindanao has in abundance.

To develop Mindanao, she advocates ASEAN’s open skies policies to extend to the BIMP-EAGA (Brunei-Indonesia-Malaysia-Philippines East ASEAN Growth Area), which will drive connectivity from the neighbouring countries and increase foreign tourists to Mindanao.

And if people realise the value that tourism brings to livelihoods and the economy, perhaps the troubles in parts of Mindanao would cease, opined Clemente.

This article was first published in TTG Asia March 2017 issue. To read more, please view our digital edition or click here to subscribe.