Visit Philippines Year to bring more domestic, inbound MICE

October 2, 2014

INTERNATIONAL and domestic buyers are organising more MICE activities in the Philippines, especially incentives, as the Tourism Promotions Board (TPB) gears up for a major destination marketing campaign next year.

A major MICE campaign will be launched as part of Visit Philippines Year 2015, which has seen increased investment in tourism infrastructure and meetings facilities in the run-up to it.

Unable to disclose more details, Karem Miranda, senior project office for the NTO’s MICE and business development unit, said: “We will be doing more to capture the local corporate market and have more groups holding their events within the country.”

Buyers said the destination already has high-standard meetings facilities, though more properties and integrated resorts, including Aseana City in Manila, are due to come online between now and 2017, enabling the conferences and exhibitions segment to develop further.

The country is getting increasingly popular in some longhaul markets where clients are seeking new experiences in South-east Asia beyond more established destinations.

“Our incentive and corporate clients are looking for something new,” said Joanna Jablonska, sales and marketing manager, Active Zone Poland. “Many have already been to Thailand, Vietnam or Cambodia, and they are now looking at the Philippines.”

She added that the country’s abundance of natural attractions and beachfront resorts is a big draw for incentive groups. “Typically our longhaul groups only want a half-day meeting during the whole incentive, and they seek something non-traditional, like having a meeting on a beach.”

Leszek Narowski, sales director, ATP Activity Poland, also said the company is keen on incentives at Puerto Princesa in Palawan. “The Philippines is new for us, but in Poland there is currently very little competition for the destination compared with other regional destinations.”

DMCs are also reporting an upsurge in forward bookings for the Philippines.

The bulk is inbound incentive groups, said Roel Privado, sales and marketing director, Sharp Travel Service, adding that the NTO’s aggressive marketing campaigns are already producing results. “We are winning back market share for international MICE business, having already confirmed conventions and congresses for the next two years, both in Manila and Cebu,” he shared.

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Egypt makes a comeback

By S Puvaneswary

October 2, 2014

EGYPT is on a mission to convince Asian markets that the destination is safe to visit, with emphasis on attracting MICE from India, Malaysia, Thailand, Singapore, Japan and the Philippines.

Adel El Masry, director of Egyptian Tourism Office (ETO), said there would be a 25 per cent growth in marketing budget for key Asian markets in 2014, followed by a further 20-25 per cent increase in 2015.

According to Adel, in 2010, Egypt attracted 14.7 million tourists worldwide but numbers dropped substantially after the Egyptian Revolution of 2011. Last year, the destination attracted 11.7 million tourists.

He said: “(In September), we started a campaign in India targeted at tour operators specialising in MICE, corporates in India, and business magazines and newspapers to look at MICE facilities in Cairo, Luxor, Alexandria and Sharm El-Sheikh. Besides showcasing the facilities, we also wish to show invited guests that the destination is safe.”

A similar campaign will be launched in Malaysia in November, then extended to Indonesia, Philippines and Singapore in 2015.

In addition, ETO will work with travel agency associations in Malaysia, India and Thailand to invite their members to visit the destination over the next year or so.

In early 2015, ETO will organise B2B roadshows in Bangkok, Singapore, India (Mumbai, New Delhi, Bengaluru, Ahmadabad and Hyderabad) and Kuala Lumpur for leisure and MICE. The roadshows will incorporate workshops.

However, despite the roll-out of Egypt’s new campaign, several buyers at IT&CMA said they are still apprehensive about sending groups to the destination.

Augustine Barretto, business associate of Mumbai-based Mercury Travels, said: “Indians are generally very scared to tread into any country that may have conflict potential, and safety is our number one priority. A lot is at stake here because we are talking about endangering the life of the whole company.

“Egypt used to be one of the top destinations but over the past five years, interest to go there has dropped to a complete zero. Since the political tension, Egypt has completely fell off the map for our corporates.”

Likewise, Shravan Bhalla, propreitor of High Flyer in New Delhi, which specialises in luxury corporate travel, said: “It will still take some time for us to warm up to the idea of going back to Egypt.”

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Additional reports from Paige Lee Pei Qi.

MICE groups unfazed by protests in Hong Kong

By Greg Lowe

October 2, 2014

HONG Kong’s MICE sector has not been significantly affected by the on-going pro-democracy protests that have paralysed parts of the city over the past week, travel specialists and hoteliers at IT&CMA say.

The Occupy Central demonstrations, which include the occupation of key commercial districts such as Tsim Sha Tsui, Wan Chai and Mong Kok by protestors, spurred a surge in enquires about safety and security but have so far resulted in only a few cancellations, trade sources said.

Anvy Wang, marketing executive at Silvermine Beach Resort, said the property had “one or two cancellations,” adding that the demonstrations had not yet led to properties discounting their room rates.

“We are receiving enquiries, some groups are worried about the situation but they’re generally not cancelling,” said Wang.

One hotelier, speaking on condition of anonymity, said she did not think the demonstrations would last too long. “I don’t think they will have much of an impact on trade. We have had some cancellations on both the MICE and leisure front, but we’re just coming into peak exhibition season, so I don’t think those groups will cancel,” she opined.

Agents bringing groups into the destination said the protests had raised concerns about safety and security.

“Corporate clients want safe destinations,” said Robert Szulc, managing director of Boomerang in Poland. “When they see problems they tend to move. That said we haven’t had any cancellations (for Hong Kong) yet.

“Some clients are calling us wanting to know more about what’s happening. We collect information from official sources, such as the government and the police, and report back to them, so that helps,” he added.

Mario Corrado, associate partner of Offbeat Venues in Belgium which focuses on the Benelux market, said he is still planning to bring a group to Hong Kong in the near future. “I don’t think it will get to the level of serious cancellations,” he said. “My clients haven’t even asked about the situation.”

Quicker immigration clearance, access to unique venues among Japan’s new lures for MICE visitors

By Mimi Hudoyo

October 2, 2014

JAPAN Convention Bureau (JCB) is rolling out a number of measures to boost MICE footfalls as part of the country’s efforts to become a tourism-oriented destination with a targeted arrival of 20 million visitors by 2020.

Among the initiatives is the introduction of fast lanes for VIPs and international travellers attending business events in Japan next year, with Narita International Airport and Kansai International Airport being the first gateways to offer this perk.

The country will also allow “trusted” travellers – frequent visitors to Japan who have been identified by the immigration authorities as posing “low risk” – to use automated gates at the immigration checkpoints.

Akira Ninagawa, executive director of JCB, who spoke to TTGmice e-Weekly during Visit Japan Travel Mart 2014 last week, also revealed that the bureau would identify unique venues and cultural programmes to attract more MICE groups.

Ninagawa said: “Places such as Tokyo National Museum, where we conducted the Japan Night (the opening dinner of Visit Japan Travel Mart 2014), Nijo Castle in Kyoto and Atakemaru (a Samurai ship) cruise round Tokyo Bay are unique venues we would like to introduce to international MICE visitors.”

Meanwhile, traditional art and craft sessions, tea ceremonies and geisha performances are some of the programmes proposed for incentive itineraries.

According to the Japan National Tourism Organisation, Asia contributed 90 per cent of incentive business to Japan last year. Ninagawa shared that Taiwan, South Korea and China are main markets.

Japan has also witnessed an immediate boost in incentive arrivals from Malaysia and Thailand after visa-free facility was granted to citizens of both countries last year. This has encouraged Ninagawa to expect similar growth in MICE arrivals from Indonesia and India which were offered simplified visa procedures at the start of this year.

Incentive footfalls are, however, not tracked in official data and are included as part of business travel arrivals. According to Ninagawa, 79,228 business travellers received support from JNTO in 2013, a 34 per cent rise over 2012.

Visitors for meetings and conventions totalled 250,000 last year.

“Moving forward, we are focusing on conferences and congresses that rotate in Asia-Pacific. We are also introducing new destinations such as Hokkaido and Kyushu,” he added.

South Korea gains popularity

By Xinyi Liang-Pholsena

October 2, 2014

SOUTH Korea is emerging as a preferred destination for international MICE buyers as they go in search for “newer” destinations for their clients, who are already familiar with South-east Asian countries like Singapore, Malaysia and Thailand.

Dubbing South Korea a “young destination” for MICE groups from the UAE, Anwar Abu Monassar, director of operations at Abu Dhabi-based The Vision Destination Management, said: “We have already seen some movement from the leisure and business markets to South Korea, but it’s still missing from the MICE side.

“The traditional destinations in Asia are Malaysia, Indonesia, Singapore and Hong Kong, so we see potential in South Korea. It’s coming without a base but we are confident it will grow,” he added.

Having recorded strong leisure demand for South Korea, Asian travel companies, on the other hand, are now keen to grow outbound meeting and incentive interest to the destination too.

Sophiya Travel & Tours Cambodia’s director of tour development, Leng Pagna, said: “We are getting a lot of enquiries for South Korea from our MICE and corporate clients in Cambodia; they have already been to nearby countries like Singapore, Malaysia and Thailand, so South Korea is viewed as a newer destination, just like Taiwan and the US.”

Most of Sophiya’s outbound MICE groups to South Korea are incentives from the Cambodian agriculture and association sectors, averaging around 30 to 35 pax who spend six days in Seoul, Jeju, Nami Island and Sorak Mountain, added Leng.

Sharing similar sentiments, Christina Pakpahan, director of Medan-based Okdo Tour & Travel Service, said: “Malaysia, Singapore and Thailand are close (to Indonesia) and already done, so we are looking for further options in Asia-Pacific like South Korea and Australia. While the Indonesian leisure outbound market is established, MICE traffic to South Korea is growing at about eight to 10 per cent.”

According to Pakpahan, her MICE groups average around 50 to 60 pax from the insurance and government sectors, spending five days to a week combining meetings and incentives in Jeju, Seoul and Busan.

Urging the South Korean authorities to build on the rising wave of interest from Indonesian MICE market, Pakpahan remarked: “We would like to see more roadshows by Korea Tourism Organization and direct (air links with) Indonesia, especially as Medan now has a new airport. Without direct flights to South Korea, we have to transit in Singapore and Kuala Lumpur.”

Keener interest in tech for duty of care

By Hannah Koh

October 1, 2014

CORPORATE travel managers are seeing a “refinement” of travel policies in the wake of high-profile airline incidents and health scares, say participants at this year’s CTW Asia-Pacific.

At the same time, popular social media platforms such as Facebook are being touted as one possible way for companies to keep track of their travellers in the event of security crises.

While panellists at the conferences also note the voluntary nature of such an arrangement, some conceded that technology is indeed “the future”.

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IHG confident of two InterCon hotels in Singapore

By Raini Hamdi

October 1, 2014

A SECOND InterContinental hotel will rise in Singapore in 2016, but the chain dismissed the notion that this was in part to safeguard the brand’s presence in the city in case Frasers Hospitality, recently acquired by Thailand’s TCC, is appointed in the future to manage the first InterContinental Singapore, which TCC owns.

Answering queries from TTG Asia e-Daily in an email interview, InterContinental Hotels Group (IHG)’s CEO Asia, Middle East & Africa, Jan Smits, said: “We have a longstanding partnership with TCC, and we foresee the continued management of InterContinental Singapore. Other than InterContinental Singapore, we manage three other hotels for TCC.”

He said the two properties would not cannibalise each other despite their proximity. The second InterContinental hotel will be on the current Gallery Hotel site in Robertson Quay while the first is in Bugis Junction.

“The new InterContinental Singapore Robertson Quay represents a more contemporary side of the city, while InterContinental Singapore, as the only Peranakan-inspired luxury hotel here, pays homage to the local heritage. While both carry the InterContinental brand, they are located in different areas of Singapore and have their own unique appeal,” Smits said.

“Singapore is among a select few cities in the world with more than one InterContinental. What we observe in Shanghai, Tokyo and London is that a combination of each hotel’s location within that particular city, the strength of the InterContinental brand and IHG’s global distribution system help each hotel to win guests without cannibalising each other.

“I believe that the buzz around a second InterContinental in Singapore illustrates the confidence our owners have in our brand, and with Singapore’s fast-growing potential as a tourism destination, we’re looking at a win-win situation for everyone.”

The new 225-key InterContinental is owned by RB Capital, which is redeveloping the Gallery Hotel site. Designed by award-winning architecture firm SCDA Architects, the hotel will sit atop a mixed-use development comprising restaurants, bars and lifestyle retail outlets. It will have a contemporary design featuring modern rooms offering views of the Singapore River and city skyline. The ground floor will house the hotel’s arrival lobby, concierge services and the hotel’s flagship restaurant. The hotel reception will be on level four, which will also have meetings rooms, function space, club lounge, a swimming pool and bar.

Kishin RK, chief executive, RB Capital, said: “The new InterContinental Singapore Robertson Quay will be an exciting addition to Singapore’s luxury hotel landscape and is the crown jewel of our Robertson Quay rejuvenation project. We are confident its modern luxury design and positioning will be a strong draw for sophisticated business and leisure travellers to Singapore. We are delighted to partner with IHG again following the successful launch of our Holiday Inn Express Singapore Clarke Quay earlier this year.”

Separately, IHG has also inked a partnership with Katong Holdings to develop the first Hotel Indigo in Singapore, Hotel Indigo Singapore Katong, with 131 rooms.

Slated to open by 2016, the new development will also comprise the third and largest Holiday Inn Express in the city, Holiday Inn Express Singapore Katong (451-rooms) in the Joo Chiat neighbourhood.

Hotel Indigo Katong Singapore is the fifth brand under IHG’s portfolio in Singapore.

PAL flies to New York via Vancouver next March

By TTG Asia

October 1, 2014

PHILIPPINE Airlines yesterday announced it is flying to the Big Apple from March 15, 2015, marking the carrier’s much-awaited network expansion to the US east coast.

PAL chairman and CEO, Lucio Tan, said: “This auspicious start of regular flights to New York will coincide with PAL’s 74th founding anniversary.”

The four-times-weekly service – Manila-Vancouver-New York – covering 14,501km or approximately 16.5 total flying hours will be PAL’s longest route. It will be operated from Terminal 1 of New York’s JFK International Airport.

PAL will have full traffic rights between Vancouver and New York.

The addition of New York brings PAL’s total US destinations to five, following Los Angeles, San Francisco, Honolulu and Guam.

Utilising the Airbus A340-300 jets that seat 36 passengers in business class and 218 in economy, flight PR 126 will depart Manila every Tuesday, Thursday, Saturday and Sunday at 23.50. Arrival in Vancouver is 20.50 on the same day.

After a two-hour transit stop, the service continues on to New York at 22.50, touching down at 07.00 the following day.

The return service PR 127 will depart New York at 11.00 every Monday, Wednesday, Friday and Sunday, arriving in Vancouver at 13.50. It will depart the Canadian city at 15.20 and land in Manila at 20.35 the following day.

The New York service will also boost PAL’s Canadian operation from a daily service between Manila and Vancouver to 11 flights weekly with three departure times from Manila – mid-afternoon, early evening and late evening.

Meanwhile, Manila-Toronto will add a fourth weekly frequency, increasing capacity on this longhaul route in time for the peak summer travel period out of Manila.

Best Western to manage hotel, convention centre in Kota Kinabalu

By TTG Asia

October 1, 2014

BEST Western International has inked a management contract with Sabanilam Enterprise for a new upscale hotel and convention centre in Malaysia, expected to open in 2016.

The brand new Best Western Plus hotel and conference facility is part of the ITCC Penampang complex – a 10.5ha mixed-use development that is taking shape in Kota Kinabalu, the capital of Malaysia’s Sabah state.

The new hotel will include 330 guestrooms, ranging from 27m² to 49m², all including modern amenities such as flatscreen TVs and complimentary high-speed Wi-Fi.

Other facilities for both business and leisure travellers will include restaurants, a swimming pool, fitness centre, business centre and meeting rooms.

Best Western will also manage the new convention centre connected to the hotel. It will feature a large ballroom capable of housing 170 tables for local and regional conferences, corporate events, product launches and weddings.

Both the hotel and convention centre will be directly connected to ITCC’s four-storey retail podium and Grade A office tower and residence.

“ITCC Penampang will be a significant addition to Kota Kinabalu’s landscape and economy, and I am delighted that Best Western International has the opportunity to be part of this exciting project,” commented Glenn de Souza, Best Western International’s vice president of international operations for Asia & the Middle East.

“Malaysia is one of Best Western International’s key growth markets. We see strong potential across the country, and with the onset of the ASEAN Economic Community in 2015, Kota Kinabalu is expected to become an increasingly significant regional centre for trade and tourism,” he added.

In the coming years, the hotel group expects to open at least 10 new hotels across the country, adding almost 2,000 guestrooms and suites.

More units for new clients

By Xinyi Liang-Pholsena

October 1, 2014

Hundreds more serviced residences will be built, but how can the product be even more relevant for Asia’s outbound leisure market? Xinyi Liang-Polsena, Mimi Hudoyo, S Puvaneswary, Paige Lee Pei Qi, Rosa Ocampo and Prudence Lui ask operators

Is the product more relevant to you?
CHAN Serviced apartments are gaining more relevance for leisure travellers, especially families travelling together. Not only do they provide a place for families to gather under one roof and enjoy the comforts of a personalised space complete with all the essentials of a home, they are also value for money as the accommodation cost could be shared among family members while dining costs could be contained with the option of self-catering in the kitchenette. Some serviced apartments also have varied and flexible room layouts to suit the practical needs of families.

LAM It depends, because there aren’t many destinations where we can include serviced residences in the FIT package. For instance, in Singapore, a minimum stay of seven days is required, whereas there is no such regulation in Thailand. The mix of room types also plays a pivotal role. For example, we usually opt for a two- to three-bedroom apartment so it’s not relevant if the operator has only studio flats. But given the rising number of new players, this means more choices for our clients.

WANIDA Serviced residences are more relevant for us in Australia and New Zealand because these two countries have a lot of apartment offers, plus they are good for families and groups of friends.

Australia is quite competitive – the three- to 3.5-star apartments there are of good standards, plus there are many apartments in destinations such as the Gold Coast. In New Zealand, self-contained serviced apartments like the Golden Chain Motels are especially popular among those on self-drive holidays.

Travellers like serviced residences only if they are affordable. But serviced residences in Asia are usually in the higher-end segment, hence are typically deemed as more expensive and applicable for business travellers than leisure travellers.

ROYANTO Yes, it is a relevant product for us, but only if the operators provide hotel standards. There is increasing demand from both the leisure and business segment, but it is still in the embryonic stage for the Indonesian market. But the uptrend will continue as leisure travellers want spacious, homely and comfortable accommodation, while business travellers seek space, privacy and modern facilities, complemented by refined hotel services.

Is the line between serviced apartments and hotels blurring? Are apartments better perceived than before?
LAM I don’t see the line blurring (in the Hong Kong market). The perception is mostly the same, i.e. serviced residences’ standards cannot match hotels’ standards. More families are now booking them due to a spacious room with kitchenette.

ANG I disagree. Serviced apartments used to be perceived as cheaper and more suitable for long-term stays than hotels. But some of the new serviced apartments are now comparable to traditional hotels, with better amenities and bigger areas. They also have fewer units, thereby offering a serene environment. All this is making the product attractive to families and friends traveling together.

WANIDA It is still a price factor as Thais, like most Asian travellers, are generally price-conscious, and will consider serviced residences only if prices are competitive. With the growth of LCCs and online bookings, there are plenty of accommodation deals online now and travellers, especially among the younger generation who care more about prices, are now open to different types of accommodation.

SYED RAZIF It depends largely on pricing and the difference between hotel rates and serviced apartment rates. Usually individual travellers and couples prefer to stay in hotels as this works out to be cheaper.

But the take-up rate for serviced apartments also depends largely on the objectives of those travelling. For example, families with children or extended families travelling together may prefer to stay at serviced apartments if their main objective is to be together as a single unit. Or they may have certain food restrictions, such as halal food requirements and choose service apartments because of the kitchennettes. The Muslim market is thus a new clientele for serviced apartments, especially in destinations where it is difficult and/or expensive to get halal food, such as in Eastern Europe. Some Muslim single travellers do not mind paying more for a serviced apartment because of the cooking facilities available.

Five years ago the supply of service apartments was a lot less and consequently demand was low. There was not much awareness about them and the perception was they were only for long-stay travellers, such as those on business. Now, it is possible to book serviced apartments for short stays of one or two nights. This makes it an option for leisure travellers wishing to stay in an environment similar to their homes and for everyone to be together.

CHAN I agree. Traditionally, serviced apartments are commonly perceived as most suitable for business travellers on overseas work assignments who need longer-term accommodation. That said, as serviced apartments continually look to improve their products and services to attract a bigger market, such as offering more competitive short-term and daily rates, enhancing room service menus, having a 24-hour reception, concierge, security services, gyms and even entertainment facilities such as bars, we see a potentially larger market opening up, from corporate clients looking for an optimal and value-for-money accommodation for their employees; to leisure travellers looking for a ‘home away from home’ where they could enjoy the amenities of a bigger and more personalised space, to larger families looking to stay under one roof.

What are the pros and cons of booking serviced apartments versus hotels from a tour operator’s standpoint?
WANIDA Serviced apartments add more choices to the array of accommodation we can offer clients. But due to a smaller room inventory, they tend to have stricter cancellation policies than hotels and also require a minimum stay. This is generally the case for apartments in Europe.

SYED RAZIF Serviced residences are mainly located in cities. Choices are limited in small towns. As the daily rates of serviced apartments are more expensive than their weekly and monthly rates, service apartments are not popular for short-stay visitors. Usually hotels have more rooms than serviced residences.

ANG Many of the lesser-known apartments can only be booked through OTAs.

ROYANTO Many serviced apartments have booking facilities via websites or dedicated portals rather than have a wider distribution system. Hotels use a global distribution system like Pegasus, Abacus, Galileo, Amadeus, Worldspan, etc. They also offer loyalty programmes and marketing partnerships.

What should serviced apartments do to increase bookings from you?
WANIDA Serviced residences must work with inbound tour operators to promote their apartments to Thai outbound travel consultants, who prefer booking from systems such as Gullivers and Gateway (a hotel consolidator). Also, serviced apartments must make themselves more visible on Gullivers and Gateway, and make it easier for travel consultants to include them as a choice for clients. For example, we use Calypso to get wholesale rates, which are secured and placed into the system by Qantas Holidays.

CHAN To attract more leisure travellers looking for shorter-term accommodation, more serviced apartments should recalibrate their pricing policy and make short-term rates as competitive as their longer-term rates.

SYED RAZIF They should offer promotional rates and attractive commissions to tour operators. If they offer net rates to tour operators, these rates should be lower than what the travelling public gets.

LAM They should offer more two or three-bedroom units in their inventory as that’s what our clients look for. The interior design and décor of some of the older properties look unattractive and ordinary.

ROYANTO They need to do some homework. Firstly, most serviced apartments are not very aware of the leisure or business segments that tour operators can generate for them. We can work together better. Secondly, they need to promote themselves more in order to create awareness among customers that they are a viable alternative to hotels.

Are serviced residence developers building the right type of products?
SYED RAZIF Yes, they are building apartments with a family concept and modern facilities you’d find in homes such as TV, Wi-Fi, sofa bed, washing machine, etc. It is also important they are located near public transport and food marts.

WANIDA The apartments are good for FITs or small groups but they are still not quite suitable for bigger or collective groups due to their fewer facilities and services, for example, the lack of porters to assist with luggage or round-the-clock reception to receive guests at the front desk. Serviced residences should therefore consider recruiting more service staff.

ANG I think they are becoming more hotel-like, but offering amenities that are lacking in hotels. Serviced apartments are moving towards the right direction.

ROYANTO Many Indonesians travel with families and sometimes extended families. An apartment nearby a popular theme park or a hospital/medical centre can offer an alternative option.

Additional reporting from Mimi Hudoyo, S Puvaneswary, Paige Lee Pei Qi, Rosa Ocampo and Prudence Lui

This article was first published in TTG Asia, September 26, 2014 issue, on page 14. To read more, please view our digital edition or click here to subscribe