MALAYSIA corporates are scaling down outbound events and postponing incentive trips to 2016 as the weak national currency makes travel plans too pricey to bear, trade players told TTGmice e-Weekly.

At press time, the ringgit has depreciated some 33 per cent against the US dollar and is now trading at 4.3027.

Syed Mohd Razif Al Yahya, group managing director and group CEO of Sutra Utama, said local corporate companies – mostly from the oil and gas, manufacturing and education sectors – had halved meeting and incentive budget this year.

“Some multi-level marketing companies, automobile, and oil and gas companies have postponed incentives to longhaul destinations to next year, hoping that the currency will improve by then. Overseas meetings are still happening but because of budget cuts, companies are sending fewer staff,” he added.

Adam Kamal, CEO of Rakyat Travel, also shared that three local clients had postponed their year-end incentives to next year because the weak foreign exchange had caused travel costs to exceed budgets.

“Those programmes were to Australia and Europe – London and Paris combined,” Kamal said.

Outbound MICE specialists are not the only ones to see a dent in business. Local hotels with meeting facilities are also getting fewer corporate event bookings.

Pamela Yew, director of marketing, AVANI Sepang Goldcoast Resort, said oil and gas companies have “cut back tremendously on meetings” at the resort since the start of 2015.

“Some companies have issued directives to staff to hold meetings in-house,” she said.

The ones cheering for now are travel companies specialising in out inbound business events.

Arokia Das, senior manager of Luxury Tours Malaysia, observed that the devaluation of the ringgit had resulted in foreign clients gaining spending power.

“Some corporate clients from India have opted for accommodation in five-star international chains, instead of four-star properties and local brands which were originally budgeted for.”

Saini Vermeulen, executive director of Within Earth Holidays, said he had seen more enquiries and confirmations from the Middle East and North Africa regions, with clients going for higher categories of guestrooms and better hotels.

THE PCO Association of Australia (PCOA) and the Malaysian Association of Convention and Exhibition Organisers and Suppliers (MACEOS) have entered into an agreement to allow members of both organisations to increase their networking opportunities, thus enabling them to promote, share and strengthen their personal and business interests.

The agreement will extend reciprocal membership benefits to the members of both organisations and this includes member pricing for all products, services, meetings and events that are offered by MACEOS and PCOA; recognition of the respective professional designations that may be offered by the organisations to applicants for the purpose of recertification; the sharing of research data and information; the creation of jointly sponsored activities and events that will encourage member interaction; and the participation of the leaders of both associations in the major events of each organisation.

Barry Neame, president of PCOA, and Amos Wong, CEO of MACEOS, believe both associations share the same principles of providing professional services to their members, business partners and business events industry partners.

Wong said in a release: “We are looking forward to a mutually satisfying collaboration in the coming years.”

THE Adelaide Convention Bureau has won hosting rights to the three-day Land Forces 2016 Exposition, which is expected to inject A$16.6 million (US$11.9 million) into the state’s economy.

In collaboration with the Australian Army, the event is likely to attract 1,100 high-level international defence, government and industry delegates from interstate and overseas. It will focus greatly on rapidly developing Asia-Pacific nations and their ties with Australia’s strategies, acquisitions, assessments and technologies within the defence industry.

More than 400 exhibitors are expected to be present, with 25% of them from international companies and organisations. Local companies specialising in exhibition and display are set to benefit from the event, as the build-up cost of an average booth at the show is estimated to be at least A$20,000.

Describing it as a “great win”, Damien Kitto, CEO of Adelaide Convention Bureau, said: “The win consolidates recent announcements regarding South Australia’s defence industry and strengthens our positions as a leading defence state. The event, which has never been hosted in South Australia before, supports the key objectives of Defence SA, and aligns with five of the Premier’s 10 economic priorities.”

THE annual Moscow MICE International Forum will likely take a break next year as economic woes in the country deepen and impact outbound travel appetite.

Kim Waddoup, the forum’s CEO who has been organising the trade event for the past 11 years, told TTGmice e-Weekly that there has been a “drastic fall” in demand for outbound tourism and the MICE sector “is a little bit quiet”.

The poor travel health has resulted in a lack of interest from exhibitors and participants, forcing Waddoup to consider skipping the 2016 edition.

Waddoup said the first three months of 2015 saw year-on-year outbound traffic plunge by 40 per cent.

He blamed the poor performance on the depreciating rouble and escalating airfaires that resulted from reduction of flights to Russia.

Also observing poorer performance in the Russian travel market this year is Judy Lum, group vice president for sales and marketing with Singapore’s Tour East Group. “Our booking activities (from Russia) are very much quieter than last year. There are still business coming through and these are essential government business groups or small meeting groups,” Lum remarked.

“The (Russian) economy is also suffering, the growing middle-class is cautious, and many travel agencies and tour operators have folded as a result,” she added.

Nevertheless, Waddoup encouraged MICE suppliers to keep an eye on the Russian market as there will be “pent-up demand” for travel when the economy recovers.

He said: “I cannot predict when the economy will recover but I do know that Russia is a resilient market and when it rebounds, it will rebound quickly.”

SUITE and club floor guests of the Grand Hyatt Hong Kong can now look forward to a refreshed Grand Club Lounge where all-day dining options and free-flow champagne is served alongside other exclusive amenities.

Located on the 30^th and 31^st floor of the hotel, the luxurious and elegant lounge presents a panoramic view of Victoria Harbour through floor-to-ceiling windows that span over 4.6 metres.

Facilities on the lower floor include a reception, a living room with communal table, boardrooms as well as a private screening room. The upper floor features an airy, multipurpose space that houses a lounge, a library and an inviting kitchen, allowing guests to create spectacular social events.

The interior styling fuses contemporary and classic custom designed furniture that draw on subtle references to chinoiserrie. Dark wood and burnished gold finishes are enlivened with light timber and white marble to provide rich contrasts that underscore the living environment. The pairing of large-scale commissioned contemporary artworks and a stunning feature light that flows down both floors further enhances Grand Club Lounge as the ultimate aspirational home-away-from-home.

The refurbishment of the Grand Club Lounge is part of the hotel’s ongoing renovation works.

CARLSON Wagonlit Travel (CWT) has launched a new meeting management app to help clients with their small and medium-sized meetings.

Called Meet by CWT M&E, the app will serve planners and attendees, and provide information such as meeting details and agenda, and delegates’ contact details to faciliate communication and networking.

Speaking to TTGmice e-Weekly, Pernilla Andrén, senior director, CWT Meetings & Events, Nordic countries, said: “We found that many event apps were aimed at larger meetings, and involve a large investment so our new app is designed to manage small to mid-sized meetings cost-efficiently.

“With our app, companies have all the information they need to manage meetings whether internal and external, in one place and at their fingertips.”

According to Andrén, there will be a “small cost” for companies who use the app, but it will be free for all users to download and use.

The app was first piloted in the Nordic region with six events thus far, and Andrén said the feedback so far has been positive.

She said: “The app’s feedback button is one of its key functionalities. It encourages users to suggest tools and services we can add to the app in future releases to make it even more relevant. We are looking forward to hearing more from our users in the coming months.”