Kazakhstan: a steppe in the right direction

September 23, 2015

To grow Kazakhstan as a tourist destination, the NTO first needs to raise awareness of the country’s myriad offerings, writes S Puvaneswary

Tourism is still a nascent industry in Kazakhstan, contributing about 1.5 per cent of the country’s GDP. The Central Asian nation received 6.4 million tourist arrivals last year, a slight drop from 6.8 million in 2013.

In July 2014, the Kazakh government introduced a year-long pilot programme to offer visa-free entry for 10 countries, namely France, Germany, Italy, Japan, Malaysia, the Netherlands, South Korea, the UAE, the UK and the US. Kazakhstan recently extended the scheme by another year to 2016.

To grow inbound tourism and reduce tourism trade deficit – outbound travel currently exceeds inbound travel by US$500 million – Kazakhstan added 10 more countries to its visa-free facility in July this year, extending the scheme to include Spain, Belgium, Hungary, Monaco, Singapore, Australia, Norway, Sweden and Finland.

“Eventually, Almaty will also include all OECD countries into the programme, though these markets will be brought on board gradually,” said Timur Duisengaliyev, director of the Tourism Industry Department.

Alicia Seah, director, marketing communications at Dynasty Travel in Singapore, said: “With the visa waiver, we are hopeful it will attract Singaporeans, many of whom are well-heeled travellers and enjoy off- the-beaten-track destinations. While our company sells packages to Uzbekistan as a mono destination, we will consider coming up with new packages combining Uzbekistan with Kazakhstan.”

Lack of destination awareness
To reduce an over-dependence on travel trade shows and consumer travel fairs, the Tourism Industry Department wants to set up marketing representation offices in key overseas markets. Currently, there are no such offices.

Duisengaliyev said: “We need to have a constant presence in key markets. It is not enough to just attend trade shows.”

The NTO is keen to open marketing representation offices in China, India, Russia and Germany by this year-end, as these countries have the capability to “generate high volumes of inbound tourists” for Kazakhstan, said Duisengaliyev.

The trade also wants the Kazakh government to do more to promote the country overseas.

Holiday Inn Almaty’s general manager, Douglas Winfield, said: “The government must come up with a clear marketing strategy to win more leisure tourists. Relaxing visa for certain markets is a great initiative, but the government must also work with the private sector to drive tourism.”

Added Saya Okas, marketing manager at Shymbulak Ski Resort, where only a quarter of its 500,000 visitors each year are foreigners: “The perception among tour operators and international tourists is that the country has nothing to offer. This is mainly due to a lack of awareness.”

Abdul Rahman Mohd Ali, group CEO of Poto Travel & Tours Malaysia said the 15-day visa-free entry for Malaysians and direct flights between Kuala Lumpur and Almaty has aided the selling of Kazakhstan to a certain extent.

He opined: “However, it will be easier to promote the destination if the Tourism Industry Department assists in joint destination promotions and marketing support for (consultants). Kazakhstan – and Central Asia as a whole – is still a new destination for Malaysians and breaking into this new market is not as profitable as selling established markets such as Central Europe.”

Golden Tourworld Travel Malaysia’s 15days/13nights Central Asia package, which combines Kazakhstan, Kyrgyzstan, Uzbekistan and Turkmenistan, uses Almaty as a gateway with Air Astana’s thrice-weekly flights from Kuala Lumpur.

Said the company’s marketing manager, Christine Ker: “We would consider extending stays in Kazakhstan if the Tourism Industry Department offers more consumer promotions to Malaysians and provides us with marketing support and product updates.”

Air Astana as key driving force
A key driver of the Kazakh tourism sector is Air Astana, a joint venture between the country’s national wealth fund, Samruk Kazyna, and BAE Systems, with shares of 51 per cent and 49 per cent respectively.

Peter Foster, president of Air Astana, laments that the government has neither a clear strategy to attract international tourists nor joint marketing promotion efforts with the national carrier and the NTO, unlike other countries in Asia-Pacific.

On its own, Air Astana works in close partnership with The Ritz-Carlton Almaty to jointly host fam trips for foreign travel consultants. The airline is heavily dependent on travel consultants as agencies make up 90 per cent of seats sold.

“Year-round, the average load factor of Air Astana varies between 65 to 68 per cent year-on-year, (offering) plenty of opportunities for (travel consultants) in Asia to sell Kazakhstan,” said Richard Ledger, Air Astana’s vice president, worldwide sales.

However, he acknowledges that the airline and the destination are not well-known for longhaul markets such as South-east Asia, thus organising fam programmes and offering special rates for preferred consultants to sell Kazakhstan packages at consumer travel fairs are important.

Urging Air Astana to work closer with the trade, Gulnora Khamidova, managing director at GM Travel House in Kuala Lumpur, said: “Otherwise, (consultants) will work with other Central Asian carriers such as Uzbekistan Airways which offers competitive rates to (consultants) or Turkmenistan Airlines which also has direct flights to Kuala Lumpur.”

To attract transit visitors through Almaty and Astana, Air Astana Stopover Holidays is a pre-paid programme which includes transfers, hotel accommodation with breakfast, city tours and seasonal free tours – such as skiing in winter and mountain biking in summer.

This article was first published in TTG Asia, September 18, 2015 issue, on page 6. To read more, please view our digital edition or click here to subscribe.

[Sponsored Post] Exclusive hosted functions at IT&CMA 2015

By TTG Asia

September 23, 2015

SPONSORED sessions aimed at captive engagement with select audiences are at an all-time high this IT&CMA 2015, with exclusive networking functions on September 30 hosted by Seoul Metropolitan Government, Dubai Business Events and Tourism Promotions Board Philippines.

Having reaped results from past sponsored networking functions at IT&CMA, the Seoul Metropolitan Government is delighted to return as a luncheon host for buyer and media delegates.

Maureen O’Crowley, Executive Director, MICE Division, Seoul Tourism Organisation expresed her confidence backed by success at previous years’ events: “We had been the proud sponsor of Seoul Gala Dinner for several years. This year, we are excited to engage with buyers and media at a Seoul Hosted Luncheon. At this luncheon, we will be highlighting new incentives from Seoul, especially our special support programs. Through this intimate session, we want to create an event stronger working relationship with our target audience.”

Also wooing buyers over lunch is Dubai Business Events, who are convinced to make its sponsorship debut at IT&CMA after successful experiences with TTG Events where the team co-organised destination-led projects such as the Asia Mega Fam for the bureau.

On the motivation behind their exclusive luncheon for 25 South-east Asia buyers, Karina Lance, Senior Manager, Sales and Convention Services of Dubai Business Events said: “Dubai city is constantly evolving. Therefore, the Dubai Business Events sponsored luncheon is a platform for us to further develop relationships with our clients, and provide them with new updates on the offerings in the business events field. We look forward to connecting with Asian MICE meeting planners and decision makers during the networking lunch.”

Also motivated by prior success with TTG Events, Tourism Promotions Board Philippines has committed to being the event’s sole dinner sponsor.

Said its Chief of Marketing and Promotions, Susan Del Mundo: “IT&CMA has proven itself as a trade event that delivers results. In fact, the unprecedented success of Philippines’ participation in the 2014 show was evident by the 100% satisfaction ratings recorded relative to the quality of the buyers and corporate travel managers that the Philippine co-exhibitors met.”

Del Mundo continued: “The sponsored dinner will be our platform to re-intensify our campaign and build a momentum for the Philippine MICE industry. We hope to garner more interest among the high quality meetings and incentive travel organisers to explore Philippines – currently positioned as one of the top Asian countries with emerging economy.”

IT&CMA 2015 will be held from September 29 to October 1, 2015 at the Bangkok Convention Centre at CentralWorld.

This year’s edition is expected to bring together more than 2,500 Asia-Pacific and international delegates. It is co-located with the CTW Asia-Pacific – The Leading Corporate Travel Management Conference For the Asia-Pacific region. For more information, log on to www.itcma.com.

Best Western makes Surabaya debut

By TTG Asia

September 23, 2015

Credit: Best Western International

INDONESIA’s port city of Surabaya is now home to its first Best Western property with the unveiling of the Best Western Papilio Hotel.

The hotel is located a 20-minutes drive away from Juanda International Airport and close to popular attractions such as the Suroboyo Carnival Night Market and the MAS Mosque.

Guest rooms come equipped with ergonomic work desks, 32-inch LED TVs and complimentary Wi-Fi, while hotel amenities include an outdoor swimming pool, kids pool, spa and fitness centre.

For F&B options, guests can go for local and international cuisine at the Mariposa Restaurant, or have a drink at the lobby lounge and bar any time of the day.

A variety of meetings spaces are also available, equipped with the latest audio-visual equipment and served by a dedicated events team.

Ron Pohl, Best Western International’s (BWI) senior vice president of brand management, said:“As Indonesia’s second largest city, Surabaya was the logical next step for BWI’s Indonesian expansion.”

With this opening, BWI now boasts a portfolio of 15 hotels across eight destinations in Indonesia.

Utah lures Chinese travellers with vast adventure offerings

By Prudence Lui

September 23, 2015

ENCOURAGED by soaring Chinese arrival numbers in the last few years, the Utah Office of Tourism (UOT) has organised an annual sales mission to Beijing, Shanghai and Hong Kong to raise awareness of the US state.

“It’s vital to increase awareness so the Chinese will include Utah in their next trip,” said Utah’s governor, Gary Herbert. “There are 43 state parks as well as other diverse recreations like hiking, camping, four-wheel drive and even golf. I’ve a special department solely taking care of outdoor recreation and they work hand in hand with the trade.”

“Statistics showed Chinese visitor spending grew by 27 per cent,” said Becky Johnson, global specialist for tourism, film and global branding at UOT. “There is also a growing trend for FITs who opt for adventures like hiking and horse riding. Apart from five national parks, we are starting to push downhill skiing in North Utah as demand from Beijing is big.

However, the challenge lies in getting Chinese travellers out of their coaches and walk in the parks in order for them to experience the vastness of Utah, she pointed out.

Johnson added: “We target Chinese travellers aged over 50 for group tours as well as multi-generation families. In order to drive more awareness, fam tours will be organised for the trade in October and November.”

In Utah’s San Juan County, attractive hotel rates (US$89 per night) will be available from November 2015 to March 2016 to entice Chinese visitors to the Monument Valley area.

Meanwhile, St George city has its eyes set on the Chinese high-end leisure traffic. Said Joyce Kelly, international marketing manager at St George Convention & Tourism Office: “We are just two hours from Las Vegas and hope to let the market know the easy access from San Francisco and Los Angeles, as well as our diverse activities like winter golf, marathons and even mountain biking. FITs from China want versatile experiences.”

Thailand wants to put winds in the sails for yachting tourism

By Michael Mackey

September 23, 2015

Credit: 123rf

THAILAND is stepping up support for the cruise and yacht sectors as part of its plans to make the country a maritime hub in South-east Asia, a senior government official told TTG Asia e-Daily.

“We are doing a study at the moment” said Chula Sukmanop, director-general of Thailand’s Marine Department on plans to grow the leisure boating sector. “We are going to send (the report) to the cabinet by December.”

The study involves looking into building new marinas in different sites such as Koh Samui, Krabi and Trat in Thailand, he added.

The government will take a hands-off approach in this endeavour, leaving construction to the private sector, who will be incentivised by an investment promotion package including tax breaks, according to Chula.

The Marine Department had recently allowed foreign yachts and large sports boats to service tourists in Thailand. Supplementing the focus on the super-yacht sector are also plans to change immigration, revenue and customs rules to enable yachts and their staff to stay for a year, he added.

A longer-term plan is to develop the cruising industry, where the lack of infrastructure remains a serious roadblock. According to Chula, there are plans to locate a terminal in Krabi on the Andaman Coast and another in Koh Samui for the Gulf of Thailand.

Welcoming the government’s plans, Andy Treadwell, managing director of yacht events company SYE, said: “There is definitely a lack of marinas in key places like Koh Samui and the west and southern coasts of Phuket.”

STB seeks star power to thrill Indonesians with new campaign

By Mimi Hudoyo

September 23, 2015

THE Singapore Tourism Board (STB) yesterday launched a new Singapura, Serunya Bareng-Bareng! campaign – which roughly translates to “Singapore, it is thrilling to travel together” in Bahasa Indonesia – in Jakarta to attract Indonesians to visit the Lion City together with their friends and families.

Edward Koh, executive director South-east Asia of STB, said: “Indonesians like to bond with their family and friends, and traveling provides the perfect opportunity for them to do so, thus STB is launching this integrated marketing campaign to invite Indonesians to create special memories with their friends and family in Singapore.

“With close to 500 flights a week to Singapore and the constantly rejuvenating landscape of the city, Indonesians have the unique opportunity to enjoy an extension of lifestyle in a different environment, just two hours away,” he added.

Indonesia is Singapore’s largest market, both in terms of visitor arrivals and tourism receipts. Of the 15.1 million total arrivals to Singapore in 2014, Indonesians accounted for over three million arrivals.

As Indonesian arrivals have softened this year due to the global economic slowdown and regional competition, this campaign is expected to boost interest and maintain last year’s performance, added Koh.

In its latest campaign for Indonesia, STB has also taken a fresh approach by leveraging the star power of local celebrities.

Michele Wooi, area director Indonesia of STB said: “We are very pleased to have Titi Kamal and Christina Sujiono as our key opinion leaders to inspire Indonesians to enjoy Singapore like they do. Widely known as celebrities who love to travel and explore new experiences with their family and friends, they are well-suited to be the face of our advertising campaign.”

She added: “We are very happy to have the support of the travel trade and airline partners who have come together to offer special airfare and attractive travel packages that are themed for family and friends.

“Indonesians can look forward to an exciting line-up of travel deals that will be featured in our promotions.”

Lasting till March 2016, the campaign will reach audiences through channels such as newspapers, lifestyle and parenting magazines, websites and social media.

Singapore opens auto immigration gates for Australians

By TTG Asia

September 23, 2015

The immigration checkpoint at Changi Airport. Credit: 123rf

AUSTRALIANS flying into Singapore Changi Airport can now enrol in the enhanced-Immigration Automated Clearance System (eIACS), allowing them use of the airport’s electronic clearance lanes from October 1, 2015.

The automated clearance systems can be found at all Changi Airport terminals and are usually reserved for Singaporean passport holders.

The service is now open to all eligible holders of Australian passports, requiring them to first apply for it at enrolment centres located at Changi Airport, Woodlands Checkpoint, Tuas Checkpoint and the Immigration & Checkpoints Authority (ICA) Building in Singapore.

According to ICA, holders of Australian passports aged six and above who have visited Singapore at least three times in the past 12 months immediately before enrolment and have no adverse record in Singapore are eligible to enrol for eIACS.

There are no costs involved in the application process and further details can be found on ICA’s website.

Extending access to the automated clearance lanes for Australians is a move done out of goodwill, according to a statement from ICA, providing greater convenience and enhanced links between Singapore and Australia.

Eligible holders of Singapore passports already enjoy similar facilities when visiting Australia.

PATA adds tourism resilience content on knowledge sharing portal

By TTG Asia

September 23, 2015

IN AN attempt to motivate the industry to move away from reactive crisis communication strategies to a more proactive tourism resilience approach, especially in light of a recent increase in frequency of both natural and man-made disasters, PATA is now encouraging organisations to share their relevant expertise on its sustain.pata.org website.

“For too long the travel and tourism industry has been focusing on crisis communications and how to respond to a disaster, however it is now vital for all organisations to place their attention on tourism resilience and preparedness,” said Mario Hardy, CEO of PATA. “It is time now for destinations to be proactive, rather than reactive.

“Severe disasters can have an immense impact not only on the lives of the people affected but also on tourism and employment in the long term. The industry needs to play an important role in encouraging disaster risk management at all levels,” he added.

While sustain.pata.org was first founded earlier in 2015 as a platform to disseminate knowledge on sustainable and socially responsible tourism, the inclusion of tourism resilience content now hopes to highlight the aforementioned vital issue, according to PATA in a statement.

Organisations can contribute to the knowledge base through this webpage or by emailing to ssr@PATA.org.

More Asian MNCs shift to global travel management system

By Prudence Lui

September 23, 2015

MORE Asian multinational companies are cutting down on local TMCs in favour of a centralised global corporate travel management system for greater convenience and savings.

Singapore-based Applied Materials South East Asia awarded its travel management contract to Carlson Wagonlit Travel (CWT) in November last year and is now using a call centre in Poland.

The company’s regional travel manager of global travel services, Winnie Liew, told TTGmice e-Weekly that using CWT helped because many of her travellers head to the US where they fly on Southwest Airlines whose “best deals can’t be purchased in Asia”.

“We need a lot of non-GDS carrier content, especially for Southwest Airlines in the US,” Liew explained. “This prompted staff to buy direct from the airline’s website and as a result we lost track of our travellers.”

She added: “Furthermore, our people move from country to country so there are a lot of challenges in profiling. CWT enables us to move profiles from country to country, saving our travellers the hassle of having to fill out their profiles every time they are transferred.”

Swiss global financial services company UBS had also recently replaced 13 different relationships with its TMCs in 13 markets with two in the US and Asia-Pacific. It also set up four to five call centres across the world.

Debbie Winston, executive director, regional head of travel, Asia Pacific, commented: “We see the value of a global travel programme which offers better compliance. The online booking tools particularly drive better behaviour as the number of touches per transaction is less than 25. Disciplined bookers drive efficiency and bring savings.”

However, travel managers pointed out that content gaps in Asia-Pacific, especially in air and hotel components in China and Japan, are limiting the real potential for companies to move entirely to a centralised travel management system.

Liew said: “GDS system is different here in Asia and languages are diverse. We still have to rely on local TMCs in China and Japan. In China we use Ctrip.”

CWT predicts positive growth ahead

By TTG Asia

September 23, 2015

THE latest 2016 Meetings and Events Forecast published by CWT Meetings & Events is taking on a tone of cautious optimism in its business prediction for the new year ahead.

The fourth edition of the annual report expects Asia-Pacific to see the largest rate of growth globally, compared to other regions. Group sizes are expected to grow by 11 per cent, whie the cost per attendee per day is forcasted to rise by five per cent.

While the unpredictable economy in Asia-Pacific could cause challenges in the region, stronger demand from China and India could drive up group size and prices.

The report also noted that supplier negotiations will be more important than ever to meeting planners, as as attrition and cancellation terms are becoming stricter.
Other key findings from around the world include:

High demand for meeting venues in North America is exceeding supply, resulting in a sellers’ market
In Europe, buyers are gaining greater negotiating power as the region sees slow but steady growth
Pockets of high demand will be created around the Rio 2016 Olympics and Paralympic Games next summer, resulting in a potential shortage of meeting space in the destination

Bearing its forecast in mind, the report has dished out a range of practical tips for meeting planners. It advises meeting planners to plan ahead, as some hotels in high-demand destinations will no longer hold space when responding to availability requests; to adjust F&B patterns to manage budget while promoting healthy alternatives that remain popular with attendees; and to increase lead time for larger events which will give meeting planners greater negotiating power.