Shopping tourism just got serious

August 15, 2014

PEEK INTO THE FUTURE: In this section, Raini Hamdi asks industry leaders to pen their thoughts on what the future will bring. Here isDesirée Bollier, CEO, Value Retail Management on the future of shopping tourism

Shopping has always been viewed as incidental, a last-minute grab for the odd souvenir to take to folks back home. The truth is quite different. Shopping tourism just got serious, and the travel and tourism industry is finally sitting up and taking notice.

The facts speak for themselves. Our nine Chic Outlet Shopping Villages in Europe drew more than 31 million visits a year, with most visitors spending a major part of their time enjoying a leisurely day and a good meal with friends. Thus, when the UNWTO declared that shopping tourism was at the heart of every holiday, was I the only one not surprised?

The rapidly growing Asian middle class is a huge bag of opportunity for retailers and tourist operators. Multi-shopping destination packages are particularly popular with Asian holidaymakers. We have found that increasingly fashion-conscious Chinese consumers are tired of counterfeits: they want the real thing and a lifestyle to match. This is why we launched the Suzhou Village in May while another, Shanghai Village, is due to open in autumn 2015.

But as the market gets more competitive, with online shopping a player to contend with, there is a need to constantly innovate to engage our astute global voyagers.

In China, for example, the customer relies on the online community for support in making purchasing decisions. We thus invest heavily in digital marketing to reach out to them and are taking key learnings from China and applying them across our business in Europe. We have also launched an app to enable guests to book their travel, access exclusive offers and plan their visit to our villages using interactive maps. This serves to make their overall experience smoother and simpler, from before they arrive to the moment they leave.

It is more important than ever that travel and tourism companies consider the customer experience from 360 degrees. With social media at the fingertips of every tourist, complaints can enter the public domain and go global quickly. Although technology can be perceived as a threat in this respect, when used cleverly it can serve to enhance the customer experience. But it needs to be targeted: many companies invest large amounts in technology that is over-complicated and irrelevant; it doesn’t aid the customer’s experience. Technology should never be the starting point. We need to listen to the customer’s wants and needs, and develop a complementary digital strategy accordingly.

The tourist is more sophisticated and well-informed than ever before, and it’s a constant challenge to anticipate and exceed their expectations, but an exhilarating one.

By Desirée Bollier, CEO, Value Retail Management

This article was first published in TTG Asia, August 8, 2014 issue, on page 10. To read more, please view our digital edition or click here to subscribe.

Merry Elephant to sweep Thailand clean of jet ski scams

By TTG Asia

August 15, 2014

AT THE behest of the ruling Thai military, the Tourism Authority of Thailand (TAT) and Ministry of Tourism and Sports are enforcing a new set of standards to wipe out jet ski scams targeting tourists.

The Jet Ski Rental Service Standards require jet ski operators to have a three-month legal business licence tied to a permanent address and a valid insurance policy.

Certified supervisors with first-aid training and signs clearly displaying rental fees, terms and conditions must also be present. Compliant operators will be issued a Merry Elephant logo to guarantee standards.

Tourists renting jet skis must also pass an assessment test and wear standard safety lifevests at all time for their own safety.

Common at Thailand’s beach destinations especially Pattaya and Phuket, jet ski scams usually see tourists returning a rented jet ski being told they have damaged the vehicle and must pay an exorbitant repair fee, fees that are often extracted under threats of violence.

Thawatchai Arunyik, governor of TAT, said: “The move is one of several measures put in place by the National Council for Peace and Order to help restore the confidence of tourists visiting the kingdom. To bring an end to rip-offs and scams, new regulations will be put in place and more ethical working practices encouraged.

“As we strive to improve the image of the country’s tourism industry, it is vital that all jet ski businesses understand that such standards are vital, and that they have to improve their quality of service, staff training and business ethics. They also have to bring to the attention of the authorities any operators who are involved with scams and damaging the reputation of Thailand, so that they can be prosecuted and forced out of business.”

VietJet boosts HCMC-Bangkok links

By TTG Asia

August 15, 2014

VIETNAMESE carrier VietJet is adding another daily roundtrip between Ho Chi Minh City (HCMC) and Bangkok from September 12.

This brings HCMC-Bangkok services to twice daily with a total weekly capacity of 5,040 passengers on the route.

Flights now depart Tan Son Nhat Airport in HCMC at 11.05 and 14.05 daily, while return journeys take off from Bangkok at 13.50 and 16.35 daily.

Tickets for the new daily service are available for purchase on www.vietjetair.com.

The Vietnamese airline recently launched Seoul (Incheon)-bound flights out of Hanoi and Danang (TTG Asia e-Daily, July 29, 2014).

AirAsia pilots on-board Wi-Fi for year-end roll-out

By TTG Asia

August 15, 2014

AIRASIA this week commenced on-board testing for its Wi-Fi products that will include instant messaging, emails and content streaming.

Tony Fernandes, CEO of AirAsia Group, said: “The Wi-Fi equipment that was introduced to us much earlier was just too expensive and we have decided to develop our own. It has taken us five years to come to this stage, but in true AirAsia style, we have to get it right and provide our guests with the best value at the most affordable rates.”

About 120 volunteers boarded a test flight for the first user acceptance test earlier this week, using instant messaging systems Line, WhatsApp and WeChat during the exercise.

The LCC will offer 60 guests on each flight the chance to take part in the Free User Test, with details to be shared on AirAsia’s website and social media channels.

HK tour guides, agencies embroiled in row over tips

By Prudence Lui

August 15, 2014

TOUR guides in Hong Kong are calling for the optional service fees that are significant to their livelihoods to be bundled into tour package prices.

This comes after a spike in cases where travellers refuse to pay the tour guides’ service fees at the end of group tours, which is thought to have been triggered by an outbound travel satisfaction survey released by the Hong Kong Consumer Council in June, advising travel consultants to tell travellers about the voluntary nature of the charge.

Service fees are at a recommended upper limit of HK$100 (US$13) a day for South-east Asia tours, and HK$140 for longhaul tours, as set by the Travel Industry Council.

The Hong Kong Travel Industry (Outbound) Tour Escort and Tour Guide Union received 15 complaints since the report’s release. Union director, Dicky Tong, said: “These situations mostly happen on discount or low-cost tours to South-east Asia or China…When the clients refuse to pay there is a serious knock-on effect down through the system because normally the tour guide has to pass on a share of his fees to the driver as well as the company.”

Tong is discussing the matter with the Travel Industry Council (TIC) of Hong Kong and travel agencies, specifically advising the former to withdraw its directive that service fees are optional.

Hong Kong Certified Escort Association chairman, Lam Chi Ting, suggested service fees be bundled into package prices. “Why can’t we treat it in the same way as the airport tax and fuel surcharge, and collect the fee from the outset, thereby eliminating cause for argument?”

However, Morning Star Travel Service’s general manager, Dannia Cheung, said: “I don’t think it’s good to bundle it in with the package tour because there won’t be any incentive for better service.”

Wing On Travel’s deputy general manager, Simon Ma, on the other hand, said refusing to tip was rare due to the company’s mid- to upscale clientele.

“To combine the fee with the tour price may undercut competitiveness and give the impression that clients are being charged more. Also, tipping is a traditional practice that incentivises the guide to work better.”

Separately, the Singapore workers’ union’s recently implemented minimum wage for tour guides has been met with rancour too (TTG Asia e-Daily, August 13, 2014).

UOL takes Pan Pacific brand to London

By TTG Asia

August 15, 2014

SINGAPORE property group UOL will build a hotel, residences and retail units on its recently purchased Bishopsgate property in London.

UOL announced yesterday in a statement that the land will be developed into a 43-storey tower with 52,255m² in space, encompassing 109 residential units for sale, retail sections and a 190-key Pan Pacific brand hotel.

The prime piece of real estate, Heron Plaza, was bought for 97 million pounds (US$161.9 million) through its two newly UK-incorporated, wholly owned subsidiaries, Success Venture Development (Jersey) and Success Venture Investments (Jersey).

Bishopsgate is London’s central financial district, located close to the existing Liverpool Street Station and future Crossrail station that is part of the East-West railway linking the entire Greater London.

UOL, together with its wholly-owned hotel subsidiary Pan Pacific Hotels Group (PPHG), owns the Pan Pacific and Parkroyal brands.

The Park Lane Jakarta turns sweet 16, joins Worldhotels

By Mimi Hudoyo

August 15, 2014

THE Park Lane Jakarta is marking its 16^th anniversary by joining the Worldhotels global alliance in a bid to strengthen its brand and reach out to new markets in the face of increasing competition.

Jon Richards, general manager, said: “We wanted to join (Worldhotels) earlier, but we have been doing renovations and it has taken a few years to finalise.”

According to Richards, the hotel has renovated guestrooms, revamped the Riva grill bar and restaurant, built new meeting rooms, and is currently constructing two more meeting rooms.

Renovations will be completed by the end of 2014, a “very appropriate” time to join Worldhotels, he said.

Noting the heightened competition in Jakarta’s hotel sector, Richards explained: “With so many hotels coming into Jakarta, we want Worldhotels’ support system and sales offices to help strengthen our brand image internationally, create new market opportunities and in conjunction with the newly established Peakpoints loyalty programme, drive increased demand to our hotel.”

He said The Park Lane Jakarta’s sister hotel, The Park Lane Hong Kong, signed on with Worldhotels eight years ago and has been enjoying substantial business from it.

Luc Bollen, area director of Park Lane Hotels International, said: “New business brings different clientele, different business spending power and demographics.

“We saw the global distribution network (of Worldhotels) work for us, and it has brought us the right client, the right price, at the right time.”

Meanwhile, Worldhotels executive vice president, Roland Jegge, stated that Jakarta was an important destination for the alliance due to the many Fortune 500 companies moving to the city, with the proximity of The Park Lane Jakarta to historic areas a boon.

“We look forward to bringing in guests of many nationalities to The Park Lane Jakarta from the markets they have no received guests from yet,” said Jegge.

The state’s hand in integrated resorts

By Raini Hamdi

August 15, 2014

PEEK INTO THE FUTURE: In this section, Raini Hamdi asks industry leaders to pen their thoughts on what the future will bring. Here is Ho Kwon Ping, executive chairman, Banyan Tree Holdings, on the future of integrated resorts

The biggest innovation in integrated resorts (IRs) since we opened Laguna Phuket 20 years ago is one that is government-led rather than private sector-driven. Singapore has demonstrated that a casino licence can be structured in such a way it fulfils a socially useful function and a tourism infrastructure development role.

The Singapore government essentially allowed two casino developers to enter, but negotiated the terms such that they also invest in other substantial enterprises they would not normally make. Thus, Resorts World Sentosa (RWS) had to cross-subsidise a Universal Studios theme park, which would otherwise not enter as it could not achieve high returns with such small scale. Marina Bay Sands (MBS) had to have a MICE facility and was used as the anchor for the redevelopment of the whole Marina Bay area.

The innovation thus is in the IR model than in the product. From a product/hospitality perspective MBS, while a fantastic architectural masterpiece, is a casino, 2,500-room hotel and convention centre – nothing too innovative there. Similarly RWS with its casino, theme park and hotels.

Developed country governments – top of mind being Australia and Japan – appear to be learning from the Singapore example. Australia previously issued only pure casino licences for small facilities, say Star in Darling Harbour Sydney or Jupiters in Queensland’s Gold Coast. But probably after seeing what Singapore has done, Queensland’s Gold Coast is issuing a casino licence to a China-backed developer – but with the condition it must develop a cruise centre (although there has been opposition from some quarters that massive dredging would destroy the biodiversity of the area).

As well, Queensland is redeveloping a state-owned land into an IR development, Queen’s Wharf Brisbane, but again stipulating a few other requirements for a casino licence.

This model would work in high income, high population areas, not in places that are remote. Singapore too is an integrated city, has a coherent masterplan for the next 20 years and, when it takes on a game-changing development, pulls all its best brains on it and takes a hands-on approach. Another country may insist on a cruise centre of a casino developer, but what point is that if it is hands-off afterwards? The developer might build a sub-standard terminal. Even if it builds a fantastic cruise centre, no cruise ships would call if the government does not build the roads and other infrastructure needed to accommodate cruise passengers.

Newly developing countries such as Cambodia, Vietnam and Sri Lanka which are said to be mulling casinos may be better off doing the classic IR. But buying power for property sales is a precondition, since infrastructure services such as security, landscaping, golf and recreation are all paid for by the residents who value the community they live in. And when these services are integrated, for example, when there is inter-hotel billing, inter-hotel transport and integrated destination marketing, only then is there a ‘real’ integrated resort.

Laguna Phuket, for instance, offers free use of inter-resort transportation via shuttle buses and lagoon boats, a choice of over 30 restaurants and bars, one centralised billing system allowing signing privileges at all hotels, and access to a wide spectrum of sports and recreation facilities through a day pass. It also focuses on environmental conservation through shared ancillary services such as laundry, water treatment and maintenance.

I have not seen any others like it besides our own projects in Bintan and now, Vietnam. I don’t consider upcoming developments in Lombok or Johor to be integrated resorts – they are basically a masterplan of land sale sites. There is no integration in the way I define it. Even Nusa Dua in Bali is not an integrated resort
because other than selling plots of land to different investors to build hotels, there is no integration of any services.

Thus, nothing much has changed apart from the innovation in forcing casinos to play a more socially useful role.

That – and the loose use of the term ‘IR’.

By Ho Kwon Ping, executive chairman, Banyan Tree Holdings

This article was first published in TTG Asia, August 8, 2014 issue, on page 10. To read more, please view our digital edition or click here to subscribe.

Malaysian capital finds its way to the heart of global chef association

By TTG Asia

August 14, 2014

KUALA Lumpur’s reputation as a culinary haven has been reaffirmed with its winning bid to host the Worldchefs Congress in 2018.

Organised by the World Association of Chefs’ Societies, also known as Worldchefs, the prestigious event will rotate to South-east Asia for the second time in its 86-year history. It will gather culinary heavyweights from around the world to discuss developments in the culinary field, while a trade show component will be offered to showcase the latest products in the food and beverage industry.

According to Malaysia Convention & Exhibition Bureau (MyCEB), Worldchefs Congress is expected to generate an estimated RM11 million (US$3.4 million) in economic impact for the country and draw an approximate attendance of 1,000 delegates.

Zulkefli Sharif, CEO of MyCEB said: “In line with our goals to attract international business events, we are honoured that the World Association of Chefs’ Societies has selected Kuala Lumpur as the venue for its Worldchefs Congress in 2018. This is also a testament to Malaysia’s vibrant and diverse culinary scene.”

According to Worldchefs, Malaysia’s bid was successful not only because it met the event’s requirements, but also because it was able to whet delegates’ appetites.

Rick Stephen, Worldchefs continental director, Asia, explained that the committee was “impressed by the presentation and the culinary diversity available in Malaysia”.

Chern Chee Hoong, president of the Chefs Association of Malaysia, said: “Our members are ecstatic that Worldchefs has selected Malaysia for its 2018 congress. We look forward to showcasing the best of Malaysia’s culinary offerings when the delegates visit in 2018.”

Malaysia was the only country in Asia to have submitted a bid, having outbid Hong Kong to become the continent’s representative in an earlier round. Besides Norway, countries that have most recently played host to the congress include South Korea, Chile, United Arab Emirates, New Zealand and Ireland.

The 2016 edition will be hosted in Athens, Greece.

TCEB dangles perks to lure more Philippine MICE travellers

By Marianne Carandang

August 14, 2014

EAGER to attract more Philippine-based association attendance at two upcoming trade shows in Bangkok, the Thailand Convention and Exhibition Bureau (TCEB) joined forces with Reed Tradex and Impact Exhibitions to run a roadshow in Manila last week.

Representatives of Philippine Health and Wellness Society (PHWS) and the Chamber of Cosmetic Industries of the Philippines (CCIP) were introduced to Beyond Beauty ASEAN Bangkok (September 18 to 20), led by Impact Exhibitions, while Philippine Die and Mold Association members heard from both Reed Tradex and Thailand Tool and Die Industry Association about METALEX 2014.

The roadshow also saw Reed Tradex and Impact Exhibitions dishing out benefits to entice participation in the highlighted events.

PHWS and CCIP members were offered a 15 per cent discount on exhibitor signups and two nights of free accommodation, while Reed Tradex dangled free twin-room stays for two nights for at least three qualified trade visitors who will be able to attend networking events, meet pre-qualified exhibitors and join an exclusive Toyota car factory visit.

Anna Marie Anastacio, CCIP president, said her members valued such opportunities and revealed that the perks had led to Bioessence, a local spa and skin care brand, to sign up “on the spot” as an exhibitor at Beyond Beauty ASEAN Bangkok.

TCEB also took the chance to introduce its new Connect Businesses campaign to Philippine MICE consultants. An improvement on the earlier 100-A-Head campaign, Connect Businesses offers an incentive worth US$100 for each delegate, presented in the form of a refund. To qualify, events held in Thailand must have no less than 10 delegates attending at least 30 business matching meetings and staying in the country for a minimum of three days/two nights.

An additional Big Bonus promotion on the revised campaign was offered to Philippine MICE players, allowing events to qualify for the incentive with only half the minimum visitor and business meeting requirement.

Commenting on the Philippine market as a source of business event footfalls, TCEB president Nopparat Maytheeveekulchai, said: “(It) is a priority market, (contributing) 25,555 MICE visitors overall in 2013 and ranking ninth in Asia (in terms of) visitors numbers at exhibitions (in Thailand).”

Nopparat added that an MoU established last year with the Philippine Chamber of Commerce and Industry and Chamber of Commerce of the Philippine Islands “had helped drive MICE growth into Thailand”.