CONSTRAINED by issues of sustainability and carrying capacity in the face of a rising tide of arrivals, Langkawi will sharpen its focus on the lucrative premium travel segment to attract more tourists.
Visitor arrivals to Langkawi climbed 12 per cent last year to reach 3.4 million tourists, surpassing the three million target initially set for 2015 in the destination’s 2011 tourism masterplan, according to Khalid Ramli, CEO of Langkawi Development Authority (LADA).
“We are hence revising our 2015 target to four million arrivals,” he said. “However, tourism receipts are still below our aim of RM3.8 billion (US$1.2 billion), so this will be a critical year for us to reach targets.”
The chief executive remarked: “We need to look at high net worth tourists because (this segment) will give higher revenue with a smaller number.”
“We don’t want amusement parks on Langkawi…We are focusing on iconic projects, not mega developments.”
In line with this stance, Langkawi’s property pipeline consists of several luxury hotels such as St Regis and Ritz Carlton, which will boost the destination’s room supply from the current 9,000 to 15,000 by 2017.
In addition, a host of new tourism products including an inclinator to bring visitors up to the Langkawi Sky Bridge (reopening by this year-end), an eco-theme park at the Oriental Village, Premium Outlets and World Cab Museum are to be launched in the Malaysian destination.
LADA is also leveraging Langkawi’s natural appeal to attract more sports and eco-related events, with high-profile events like the IFMA Muaythai World Championship and Ironman making their debuts this year.
Meanwhile, LADA is currently in talks with airlines and relevant authorities to welcome direct flights from the Middle East, China, South Korea and India, revealed Khalid.
THAILAND’S domestic turmoil has impinged on Bangkok Airways’ performance, but has not hindered the independent carrier from keeping up its network and fleet expansion ambitions.
Puttipong Prasarttong-Osoth, president, said: “We have been seeing minor effects as most of our passengers typically take our flights to connect to Thailand’s tourist destinations once they arrive in Bangkok. We see an overall decrease, not in any particular sector.”
The carrier’s initial public offering (IPO) launch, originally slated for 2013, has been postponed – no doubt affected by the political troubles. Puttipong is hopeful the filing process can be completed within this year.
The IPO cash haul will “mark a new history” and further propel the airline’s growth, although the CEO declined to elaborate what Bangkok Airways’ priorities are.
The carrier will keep its focus on domestic expansion for the time being, he said. Services from Bangkok to Udon Thani were launched last November, to be followed by Chiang Rai on March 28, widening its domestic network to nine cities.
“We are looking at another domestic destination later this year, possibly in southern Thailand,” he shared.
Frequency of popular routes such as Chiang Mai will be hiked from six daily flights to seven, Phnom Penh from four daily flights to five and the Maldives from five weekly flights to daily.
At the recent Singapore Airshow, Bangkok Airways placed an order for six ATR72-600s worth some US$200 million.
These new jets will spell the beginning of the carrier’s fleet renewal process, and replace the ATR-72 turboprops currently deployed on routes such as Koh Samui, Trat and Luang Prabang.
The first ATR72-600 is expected to arrive later this year, four in 2015 and the final jet in 2016. The six new aircraft will add to Bangkok Airways’ existing 10 Airbus A319s and seven A320s.
IT is still billed as the most important travel tradeshow but rising costs of participation at ITB Berlin are forcing exhibitors to look twice at ROI.
Asian sellers interviewed said ITB is costly even for buyers in light of accommodation costs, and this may impact their numbers and quality in turn.
“ITB is the most expensive event we attend. It still works but actually each year we see fewer buyers from markets outside Germany. If it becomes a German market event, we would reconsider our investment, downsizing to the market than the large corporate stand plus tables in the various tourism authority stands we take up now,” said Chris Bailey, Centara Hotels & Resorts’ senior vice president sales and marketing.
Judy Lum, Tour East Group vice president-sales & marketing, said the cost of a corporate stand has risen 40-50 per cent in 10 years, given a hike of five to eight per cent a year. This excludes cost of furniture, F&B and electrical fixtures, which has also increased exponentially. Cost of participating within the NTO stand, meanwhile, has risen more than 100 per cent as the NTO no longer subsidises the fee. “Worse, the participation cost, which is the bulk paid to the NTO, is not tax deductible,” said Lum.
“For Tour East, we are seriously assessing the ROI on roadshows versus ROI on tradeshows. In fact, we have cut down on tradeshows since 2012 and are following the footsteps of some hotel chains by investing on roadshows.”
World of Accor Expo, for instance, travels to 12 cities across Asia-Pacific. Last year, 200 Accor hotel or regional sales executives met with over 5,000 clients, a “powerful and targeted strategy” said Graham Wilson, senior vice president sales & marketing.
Wilson said the chain offsets its ITB expense by having a global sales meeting prior to ITB. It also hosts a VIP client event to thank its most valued customers.
Richard Brouwer, CEO of Diethelm Travel Group, said: “Over the years, the number of quality buyers has dropped, which is due indeed to costs. Many buyers now also prefer to meet their suppliers on their home turf, where more detailed meetings can take place and more of their team members can be involved,” he said.
But David Ruetz, head of ITB Berlin, said the show has kept its costs down, with booth price at 170 euros (US$235) per m2 today after inflationary rises of four to five per cent per year. Berlin has more than 130,000 hotel rooms, which ensures reasonable rates.
Over the past 10 years, the number of international buyers has actually risen, now accounting for a third of all buyers compared with 25 per cent before. “If you look at ROI, it should be how much money did I spend per lead? No question, we have the record for the best price/value equation,” he said.
And the best judge is a waiting line to exhibit at ITB in the Asian and Middle East halls. “Thailand and Malaysia are among Asian countries looking to expand while Mongolia, being official partner next year, will naturally need more space,” he said.
TOURISM players in Dubai and the Maldives have to contend with new tourism taxes and the operational headaches they bring.
Dubai is introducing Tourism Dirham, a new hospitality fee ranging between seven (US$1.90) and 20 dirhams on hotel stays from March 31, while the Maldives resumed the bed tax of US$8 per bed per night from January.
Majestic Hotel Tower Dubai director of sales, Stella Giasta, said: “Tourism Dirham won’t have a problem on demand, but it will raise a lot of operational issues as rates are negotiated a year ago or sometimes even more.”
As the tax is levied according to the number of bedrooms, Giasta foresees some groups or families staying in accommodation with multiple rooms burdened by the higher fees. Further confusion may arise over a two-month exemption period, in which guests who have paid in full by February 23 and stays completed by May 31 will be exempted, she shared.
Likewise, the Maldives’ changing taxes – the bed tax will be removed in November 2014 when the tourism GST is raised from eight to 12 per cent – also bring with them operational challenges for suppliers.
Tropical Collections Maldives’ director – business development, Aminath Shadiya, said: “Our reservation system and software programmes have to be changed within a short period of time to reflect the different taxes.
“I’m not against the tax, but more time should have been given for us to prepare,” Shadiya commented, adding that tour operators who have included prices in their catalogues will face more difficulties in explaining the rate differences to clients.
In a destination already pegged with high operational expenses, Dusit Thani Maldives’ director of sales and marketing, Thanos Lionsatos, expects the taxes to “affect bottom line”.
“We need to think creatively if we are to pass (the tax burden) onto the consumer…We need to deliver a far more superior product with additions and modifications so that any possible rate increases are justified,” he opined.
David Kevan, partner, Chic Locations UK, agreed: “The Maldives’ average selling price is a good 15 per cent higher than other destinations (offered by Chic Locations). It’s still an important destination for us, given the value of the bookings, but I don’t see it as a growth destination, (due) to the high price which does limit its attraction.”
Likewise, Hamzah Rahmat, director of Beststar Travel Centre Malaysia is concerned that Dubai’s tax policy will “add to the total cost of the travel package”, particularly as the ringgit-dirham exchange rate has not been favourable to Malaysian visitors to the destination.
He remarked: “Business travel will not be impacted…Leisure travellers will consider the total package price and if the costs go up too much, they will opt for other destinations.”
But Giata believed taxation “is an efficient way to bring in revenue”. “It’s a circle – everyone will benefit at the end of the day. The destination quality will improve, more tourists will visit and hotels will get more business.”
SINGAPORE Tourism Board (STB) has released its first TravelRave report recapping highlights from the annual travel trade festival held last year, underscoring talent, technology and the Asian millennial traveller as key areas needing address.
Travel and tourism leaders at TravelRave 2013 identified high turnovers, skill mismatches and employees unprepared for leadership roles as some of the challenges companies faced in the industry.
To attract, retain and develop high-quality talent at all levels in Asia, two working groups were formed out of the Asia Travel Leaders Summit.
The Executive Development Programme arose from the discussions, led by Marc Dardenne, CEO Patina Hotel and Resorts, in collaboration with Shatec and DePaul University. It will be inaugurated this month for mid-to-senior level hospitality executives. It comprises four modules over a period of eight months and covers topics such as leadership, finance and revenue management, among others.
Additionally, a joint study by STB, Visa and McKinsey & Company delved into the profile of Asian millennial travellers, revealed that over the next decade, this most educated and connected generation (born between 1981 and 1995) will enter their peak earning and spending years, presenting significant business opportunities for the travel industry.
As Asian economic powerhouses continue their growth trajectory, the Asian millennials’ expenditure on international travel is expected to increase by 1.6 times to US$340 billion by 2020.
With regards to technology’s continuing impact on the industry and the opportunities it would bring, according to The Constantly Connected Traveller, a Google study presented at TravelRave 2013, more than four-fifths of Asian travellers use the Internet to plan their hotel stays, using an average of four different sources of information.
The report also highlighted research presented by PhoCusWright, which projects that the Asia-Pacific travel market would maintain its growth of international tourist arrivals through 2015 to reach US$407.3 billion, with China accounting for a third of that. Travel Link Daily also noted the potential of the market, as only three per cent of China’s population is passport-holders.
TravelRave 2014 will take place in Singapore from October 27-31, 2014. It will see the return of anchor events such as the Asia Travel Leaders Summit, ITB Asia, Web In Travel, Aviation Outlook Asia, TravelRave Leaders Gala and Singapore Experience Awards.
THE Indonesian government has imposed new tariffs on parks and hunting grounds under the portfolio of the Ministry of Forestry, and the move is expected to result in an almost eight-fold increase in entry fees for foreign tourists.
The new regulation divides national parks, forest and natural parks tariffs into three rayon groups.
The entry fee for foreign tourists to the parks of Rayon 1 is 250,000 rupiah (US$22) per entry per day, 200,000 rupiah for Rayon 2, and 150,000 rupiah for Rayon 3. Tariffs for domestic tourists are 10 per cent of the above.
Monthly dues are also applied to the parks, payable to the national treasury for services in the parks, like tourism information, guides, transportation, travel, F&B and souvenirs.
Most of the natural tourism destinations popular with international tourists to Indonesia belong in Rayon 1. Some of the national Parks in Rayon 1 are Bromo-Tengger-Semeru, Komodo, Rinjani, Bali Barat, and Tanjung Putting, while natural parks in Rayon 1 are Mount Tangkuban Perahu, Mount Papandayan, Batimurung and Ijen Crater, among others.
The first national park announcing the new entry fee to apply as of May 1 is the management of Bromo-Tengger-Semeru National (TNBTS) in East Java.
The national media quoted TNBTS head, Ayu Dewi Utari, as saying the entry fee for domestic travellers would increase from 10,000 to 37,500 rupiah on weekdays and 67,500 rupiah on weekends and public holidays.
The entry fee for international tourists will increase from 72,500 to 267,500 rupiah on weekdays and 640,000 rupiah on public holidays.
The new ruling has shocked the travel industry, not only in East Java where Mount Bromo is the icon, but those doing Indonesia round trips.
“This (increase in Bromo’s entry fee) is really shocking …we are in the middle of a season (where package prices are already in place), and May is the beginning of the summer peak season. Contracts are fixed up to March 2015.”
He explained he is not anti-price hike as long as it is reasonable and timely: “If the government wants to increase (the fee) that high, it should plan and implement in stages.”
Yusak Anshori, chairman, Indonesia Tourism Council, East Java Chapter, pointed out: “With such an increase, what new and improved facilities does the management offer in Bromo? The government just doesn’t understand the politics of tourism. This will kill not only the industry but also the local people who live from Bromo tourism.”
Ada Travel Indonesia, Malang managing director, Supomo, revealed: “The Care for Bromo Society, which includes tourism-related associations and the groupings of Bromo Tengger societies, met yesterday and in principle, everyone rejects the regulation, and we are planning on movements of rejections, but have yet to decide on the format.”
Ayu Mandiri Tours and Travel Jogjakarta managing director, Aji Sutomo, said: “It is a big challenge for overland tour operators like us. Bromo is the icon of East Java, if we take that out of the programme, what else is there to offer (as the main draw to the destination)?”
Marintur Indonesia executive director, Ismail Ali, opined: “If it is only applied to Bromo, we can take it off the package and offer it as optional tour. But if all national parks’ entry fees are up so high, I think it will be back to square one, where everyone will only go to Bali again.”
Indonesia has seen the trend of international tourists travelling around Indonesia, beyond Bali, in the last few years.
From health-conscious wanderers to those travelling with little tots, tours are being created to meet needs of all kinds
Tourism Authority of Thailand
Eat your way through Asia
Having found success in offering foodie experiences to visitors to Malaysia, Discovery Travel & Cuisine is now in the midst of developing outbound culinary tours to Laos, Cambodia, the Philippines, South Korea, Japan and China.
“The strategy to tweak our inbound travel business with food and culinary experiences has worked profitably for us, recording an increase in demand and sales from year to year,” said director Lee Choon Loong, who claims the tour and travel company is the first and only licensed one in Malaysia to have ‘Travel & Cuisine’ as part of the company name.
“We are applying for an outbound licence to market outbound culinary tours targeted at the youths in the 18-35 age group, who are more adventurous and Internet savvy. This provides us with the opportunity to tap social media,” he said.
“We are currently developing our website with enticing images of food and compelling stories about food culture, culinary styles and gourmet destinations with the help of national tourism offices in Thailand, Laos, Cambodia and the Philippines.”
On why the above countries were chosen, Lee explained: “We prefer to develop culinary tours around destinations which are rich in culture and food resources but somehow lacking in built attractions. Food culture then becomes the unique selling point of the destination.”
Clients will get to discover local produce and learn how to savour exotic food like raw prawns with pepper-calamansi sauce on the banks of the Mekong River in Laos or enjoy stir-fried flower crabs with Kampot pepper, which originated from a local fishing village in Cambodia.
He added: “Food is not fun without the right company, and we only develop customised tour programmes for like-minded travellers with the same interest and passion for food culture. – S Puvaneswary
Chan Brothers Travel
Kids can have fun, too
Introduced last year, the Little Tots Can Fly programme by Chan Brothers Travel Singapore incorporates child-friendly itineraries for families with children as young as two years old.
Currently available for itineraries in Hong Kong, Taiwan, South Korea and Japan, these programmes are designed around fulfilling the requirements of toddlers from two to six years old. Arrangements include more conducive daytime flights, later morning calls, extended meal duration at kid-friendly restaurants, a more relaxed pace of travel and family photography sessions by professionals.
Jane Chang, marketing and communications manager, said: “This series helps to plug the market gap for parents of young toddlers who wish to travel but have their own set of unique travel requirements. Response for this series is encouraging and we are expecting significant growth this year.” – Paige Lee Pei Qi
In tip-top shape
Panorama Tours Indonesia launched medical tourism packages in 2013, with Malaysia as its initial destination.
Hellen Xu, managing director of travel management, said: “Medical Check Up is a new product we launched last year and the result so far is so-so. This year we are planning to promote it well as we believe the market is there; we just need to tap it. Our target market is A- and B-class clients above 35 years old.”
Starting with basic check-up programmes, Panorama works with hotels and hospitals in Kuala Lumpur and Penang.
A three-day package in Kuala Lumpur starts at US$289 and US$285 for Penang. This excludes airfare but includes two-night accommodation, a medical check-up at Gleneagles Hospital and airport transfers.
The medical check-up in Kuala Lumpur includes a physical examination, ECG, lung function test, chest X-ray, blood and urine test, as well as review of reports. In Penang the package includes physical examination, visual acuity test, chest X-ray, ECG, body fat measurement and a laboratory test.
Asked if more extensive medical packages would be offered, Xu said that these are available on request, but could be developed into ready-made products should the market grows.
“Indonesians usually look for references from friends when it comes to treatments – which doctor, which hospital – and they go to travel agencies for hotel and transport arrangements, and sometimes optional tours,” she said. – Mimi Hudoyo
Make the most of weekends
Long weekend holidays are usually planned late and the runway within which all bookings need to be firmed up are excruciatingly short. Most of such requests come from clients who are well travelled and usually decide on the spur of the moment, or are unaware if they will be available on a specific date and so cannot plan ahead.
In response, Thomas Cook India launched 48H holiday packages a year ago, where the entire trip from ticketing and hotel bookings to ground transportation and excursions can be booked and delivered to the client within 48 hours of receiving the request.
“Many clients used to ask for domestic destinations as they thought that we had too little time to offer outbound holidays within such a short time frame,” said Madhav Pai, COO of leisure travel (outbound).
A range of destinations are offered, including Ireland, Jordan, Ecuador, Cyprus, Mexico, Seychelles, Thailand, Indonesia, Turkey, Hong Kong and Macau.
Ankur Khanna, managing director, India-based Tristar Holidays, said: “It is easy to create and confirm these packages if the destination offers visa on arrival to Indians.” He added that the price of these holidays could be 10-20 per cent more than usual as the bookings are last minute, but this did not faze any of his clients. – Shekhar Niyogi
Connecting agencies to customers
Attempts have been made to bridge the divide between one-on-one travel consultation and the lack of customisation available on online portals.
Hello Travel in India, for example, analyses the requirements of online travellers and finds travel agencies whose expertise will match their requests. Clients then get multiple itineraries and personalised suggestions from travel consultants.
Such websites allow companies to enrol with them, then purchase leads and execute itineraries. These leads are paid for on a unitary basis and the contract may be for a set duration.
However, according to trade players, any such model leaves gaps in credibility and durability of such contacts.
Anil Guptaa, managing director, Anjali Tours & Travels India, said: “This sort of market intelligence does not give me the connections I need. Moreover, it is possible that the same leads may go to my competitors too, diluting my sales effort.”
Other companies like Internet Moguls are trying to close this chasm in a more holistic manner by offering turnkey solutions. It has created a website that will enable B2B as well as B2C interface, management of social media to get more responses, execution of the marketing plan and realistic projections of outcomes.
If the travel consultant signs up for a three-year contract, Internet Moguls works for zero retainer and charges a 15 per cent commission on incremental business beyond US$1 million based on a performance guarantee of its marketing plan.
Avijit Arya of Internet Moguls said: “Long-lasting connection with consumers is not a simple task. We advise, plan and guide our clients to end solutions that result in a much larger client base for them, helping their clients perform and stay with them if they are satisfied with the service.” –Shekhar Niyogi
Customers want holidays to be hassle free from start to finish. Mimi Hudoyou, Paige Lee Pei Qi, Shekhar Niyogi and S Puvaneswary look at how agencies are achieving this
The client wants to watch the sunrise from the 110th floor of Burj Khalifa when it is not open yet. Another wants to exchange rings underwater among the corals in Great Barrier Reef. A third wants to be photographed with the sharks in an aquarium without it being apparent that it is an aquarium. Such requests are increasingly de rigueur for travel companies, whether an owner-driven boutique agency or a large tour operator.
To cater to special interest customers seeking customised travel programmes, outbound agencies are investing more time to tailor their offerings according to requests.
Anthony Chan, group managing director, Chan Brothers Travel Singapore, said: “Planning, sourcing and quoting for customised tours can be extremely resource draining and time consuming.
“The complexity of customisation, which usually requires detailed and lengthy elaboration from a face-to-face personnel, makes this a challenging product to be offered online.”
Likewise for Clifford Neo, managing director of Singapore-based Dynasty Travel, the challenge lies in having to manage variable components such as airfares and hotels.
He said: “We are able to work on economies of scale for special hotel rates as we do have volumes for certain hotels with our big groups and incentive tours as well.”
Promotional airfares are also utilised to keep costs down. Neo explained: “For us to enjoy higher profits, we may suggest to customers to travel during low season. We will work out the cost savings and value-adds for customers when they choose to travel during low season.”
For Panorama Tours Indonesia, groups of small sizes are booked through the GDS at rates offered, while requests for group rates are made to suppliers for bigger numbers, said its managing director, travel management, Hellen Xu.
She added: “The advantage of being a big company is that we can negotiate prices based on total production as a group in a year; this way, we can keep prices down.
“To ensure profitability, we mark up the price to cover operational costs and get some profit, and in cases of big volume, we obtain kickbacks when we achieve a certain target.”
Centara Grand Island Resort and Spa Maldives
High expectations come at a price
Dynasty Travel’s Neo pointed out that a customised tour package can be up to 40 per cent dearer than run-of-the-mill products. They usually include private car transfers, minimal shopping stops, and exclusive food and tourist attractions based on client preferences.
Thus these high-end programmes are often sought by those with deeper pockets.
Valmiki Hari Kishan, managing director, India-based Valmiki Travel & Tourism Solutions, said: “Clients who request customisation of tour itineraries are frequent travellers who want experiential holidays that are off the beaten track and will cater to their preferences in every way. They are affluent and have sufficient time to indulge themselves.”
However, not all travellers may be realistic in their demands, say agencies.
Apple Vacations & Conventions Malaysia’s MICE manager, Queenney Lew, observed: “Clients may have a small budget but expect to stay in a five-star hotel and eat at fine-dining outlets. To prevent misunderstanding, we always get them to sign an agreement before departure for the tour details we proposed based on their budget.
“For best tour package fares, the client should give us a lead time of at least three months. If it is a last-minute booking, we will not be able to negotiate with hotels and airlines for the best prices.”
“We do our best to accommodate the clients’ needs, which sometimes can be complicated, but they are not always ready to pay a high price,” added Panorama’s Xu.
Staff knowledge is key
As such, it is crucial for travel consultants to give the right advice to clients, Xu pointed out.
Sanjay Kothari, managing director, Just Holidays India, said: “I have demarcated my staff as per their expertise, e.g. island holidays, where they are expected to know the difference between beaches in Seychelles and those in the Maldives.
“I also train my staff region-wise and based on the character of the destination. For instance one person for Australia and New Zealand, another for Turkey and Greece and yet another who knows the difference between different game reserves in Africa.”
Smailing Tours Indonesia also has dedicated staff for its Signature Products division, which offers customised travel programmes with culinary, sports and shopping themes.
Signature specialists go on fam trips and participate in trainings on upmarket travel products organised by NTOs, said spokesperson Putu Aristyadewi.
“The specialists will then conduct training for travel consultants on the products, so that they are aware and can give preliminary information to customers and refer interested clients to the specialists,” she explained.
At Apple Vacations, its customised travel team often holds regular meetings where tour leaders share with the operations team about their recent experiences. Frontliners who are new to the industry will also accompany senior tour leaders on tours to gain experience, said Lew.
Travel consultants selling customised programmes must have passion, patience and persistence in order to successfully create unique tour packages, opined Valmiki Travel’s Kishan.
Dynasty Travel’s Neo added: “This is a personalised service that requires in-depth destination product knowledge. The Internet is a base for customers to get information and, as a travel agency, we need to assist to sieve out the information and advise them accordingly.”
Others like Ankur Khanna, managing director, Tristar Holidays India, believe in interacting with his high net worth clients personally for all their customisation needs. “They trust my experience and my knowledge. Often I tell them not to go somewhere with good reason and they take my advice. With such clients, the interaction is relationship-based.”
Resorts World Sentosa Marine Life Park
Reliable partners needed
Strong support from ground operators is critical in helping agencies meet their customers’ demands.
“We value knowledgeable and innovative operators who are willing and able to go beyond off-the-shelf programmes to offer bespoke experiences and unchartered territories despite the smaller group sizes,” said Chan Brothers’ Chan.
Tristar’s Khanna added: “My relationship with my suppliers is dependent upon mutual understanding that we are providing exclusive concierge services to very select clientele whose continued relationship with us is crucial for our success. Word of mouth is invaluable.”
Besides having the right expertise, overseas land operators also “need to have ‘muscle’ or connections in negotiating good rates”, said Dynasty Travel’s Neo.
“We need suppliers to be more flexible in their policy and also help us by giving suggestions on how to maximise clients’ time and money,” said Panorama Tours’ Xu.
Timeliness is also crucial. Apple Vacations’ Lew said: “Clients wish for a really hassle-free holiday. Our customised tours are also flexible with our driver and guide on stand-by. Based on experience, we know there will always be clients who will make last-minute changes to their bookings and tour itineraries.
“Our customers expect us to respond quickly to their requests. Hence it is imperative that we establish a good working relationship with our suppliers.
“Operation wise, suppliers such as hotels, ground operators and airlines should respond quickly when we request for change of dates and alternative arrangements…We filter our ground operators and work with those who give us good support.”
Additional reporting from Paige Lee Pei Qi, Shekhar Niyogi, S Puvaneswar
THE Singapore government’s recent move to raise liquor excise duties by 25 per cent will add to the F&B bill for corporate functions but DMCs in the city-state said it is still early days to determine how this will impact the way clients conduct their events.
The 25 per cent hike means a litre of beer than once cost S$48 (US$38) will now be S$60.
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World Express’s managing director Darren Tan, said: “This will definitely increase the expenditure of MICE events if organisers are budgeting for wine and beer in the programme.”
Tan explained that alcohol usually made up 25 per cent of the total dinner bill.
“However it is still too early to assess the real impact and, anyway, Singapore has been known to be an expensive destination for alcohol all along,” he added.
Dynasty Travel’s marketing communications director, Alicia Seah, believes that Singapore’s pricier alcohol will not affect clients much “as they are looking at an entire budget for MICE events”.
David Donald, general manager of Parkroyal on Beach Road, who estimates alcohol consumption to make up at least 15 per cent of the MICE event cost, also downplayed the impact of the tax hike.
“The increase is translated to approximately S$0.40 per glass of wine or S$0.20 per glass of beer,” he pointed out.
Having said that, Donald told TTGmice e-Weekly that the hotel intends to absorb any additional cost resulting from the higher liquor excise duties.
For clients who are concerned about heavier event bills as a result of the tax hike, World Express’ Tan suggested: “Go on consumption basis for small groups, and reduce the beverage package duration for larger groups.”
Seah also offered this advice: “We can look for cost savings in other areas such as complimentary meeting spaces, reduced room rates or free upgrades for VIP delegates.”
THE Philippine Retailers Association (PRA) has trounced its counterparts in Thailand and Australia in bidding for the 17th Asia Pacific Retailers Convention and Exhibition (APRCE) next year.
Asked what’s PRA’s winning formula, assistant secretary general, Ana Marie Miranda, said: “We showcased why it’s More Fun in the Philippines – both in the retail business side (since attendees are retailers, we highlighted our world class shopping centres), as well as the tourism side. We made them want to come to the Philippines both for business and leisure.”
APRCE is the main activity of the Federation of Asia-Pacific Retailers Associations, which has 17 association members from 17 countries. It is the longest running regional retail conference in Asia, held every two years. The 2013 edition was held in Istanbul, Turkey.
About 1,500 foreign delegates and 2,000 locals are expected during the three-day APRCE at SMX Convention Centre Manila in 2015. The date in September or October is yet to be determined, to ensure it will not clash with APEC Summit.
To boost delegate numbers, Miranda said PRA will “use all forms of media to connect and engage them to make them interested to come and attend. We will utilise both traditional marketing efforts (ads in local and regional publications, TV, radio, etc.) as well as social media and digital/mobile marketing”.
PRA is in the process of preparing the event programme.
“We aim to make APRCE 2015 another world-class regional event to benchmark on so we will be inviting world-class and global leaders in retail. We will also promote pre- and post-event tours,” said Miranda, adding that destinations are still being finalised.
When PRA last hosted APRCE in 1993, it won the Kalakbay Award for Event of the Year
