Boom in Asian globe shoppers

September 6, 2013

Chinese travellers have become the new darling of the global retail scene, especially as some 100 million Chinese tourists are expected to travel outside China by 2015, according to data from UNWTO.

Furthermore, the Chinese have been crowned the biggest spending nationality in 2012, accounting for 25 per cent of the value of all tax refund claims made, according to international tax refund company Global Blue.

Chinese travellers made more than three million transactions last year, a significant growth of 58 per cent from 2011. Chinese travellers are developing a reputation as “keen shoppers” and they have earned the name of “big spenders” worldwide, according to Stefan Ellrott, country manager, Global Blue Singapore.

He said: “Chinese visitors are the most willing (travellers) to part with their money when it comes to overseas shopping. We refer to this group of visitors as globe shoppers because of the high priority they give to shopping when travelling.”

According to Ellrott, the average Chinese visitor to Singapore spends close to a staggering S$18,000 (US$14,052) per trip on shopping alone, spending largely on watches, jewellery, fashion and clothing.

Apart from China, several Asian countries are also on the to-watch list. According to Global Blue, Russians were the second highest spending nationality after the Chinese, while Japan and Indonesia came in third and fourth respectively. Meanwhile, Thailand and Malaysia joined the top 10 list for the first time in 2012.

It is estimated that more than 200 million tourists from the 10 globe shopper nations travel overseas each year, and globe shopping is becoming a larger and more important part of these travellers’ itineraries.

Arjen Kruger, executive vice president at Global Blue, said: “The rise of the globe shopper is one of the most dramatic stories of the 21st century luxury goods landscape, not just in Europe but worldwide. For some manufacturers and retailers, globe shoppers, who on average spend four times more than local shoppers, are now considered the most important customer segment for the business.”

The top 10 globe shopper nations have some preferred destinations in common; all nationalities shopped heavily in at least some of the most popular tax-free shopping destinations: France, Italy, the UK, Germany and Singapore. Other favoured destinations include Finland, Austria, Spain, South Korea and Switzerland.

Ellrott said: “These are exciting times for the world’s most popular shopping destinations that are set to receive the rapidly growing ranks of globe shoppers.

“For the travel (consultants), it will be a good time to tie up with retailers to do pre-travel marketing and woo these shoppers.”

Alicia Seah
Senior vice president, marketing and PR,
CTC Travel Singapore

The Great Singapore Sale

When does this event take place?
The Great Singapore Sale (GSS) offers eight weeks of shopping with special deals on everything, from fashion and watches to jewellery, electronics and toys, all over Singapore. It takes place annually from May to July.

Can you sell the festival?
During the GSS, we roll out customised shopping packages in accordance to individual market’s needs, culture, behaviour and preferences. For example, for the Indonesians who travel with extended families, 50 per cent of their time is spent on shopping, and we will bring them to Orchard Road, Chinatown and family-oriented malls. But itineraries for the Chinese and Japanese will focus more on shopping for branded and designer label brands.

We are still seeing growth for China and India for group shopping tours, and increasingly from Indonesia and Hong Kong. For FITs we have tied up with Ion Orchard to promote the Tourist Wallet featuring discounts at selected retail stores.

What challenges are there? Any improvements needed?
With the strong Singapore dollar and stiff competition from Hong Kong and South Korea, it is challenging to attract tourists to shop (in Singapore). To stay competitive, we need to ensure the GSS savings are genuine and the deals are exclusive. A good variety of merchandise must be available and more promotions created during this period. – Lee Pei Qi

Umberto Cadamuro
COO inbound,
Pacto Indonesia

Jakarta Great Sale

When does this event take place?
Taking place between June and July each year, this annual event usually runs for six weeks and highlights discounts at shopping malls and department stores across Jakarta.

Can you sell the festival?
While it is always a (good idea) for travellers to experience some great shopping in a city, the fact is that most of the packages are prepared on a yearly or six-month basis, depending on the markets, and are generally already quite loaded with activities.

Hence it is difficult to use the Jakarta Great Sale as a leverage for additional sales.

What challenges are there? Any improvements needed?
I believe that strong marketing is needed for Jakarta. The city is an excellent destination in terms of hotels, restaurants, nightlife and indeed shopping, but it is (commonly) perceived only as a business destination or as a departure point for overland tours.

If the perception (of Jakarta) changes to that of a great and vibrant city, as indeed it is, then events like the Jakarta Great Sale will offer extraordinary value-added benefits, especially if special deals for foreign passport holders are implemented.
– Mimi Hudoyo

Michael Wu
Managing director,
Gray Line Tours of Hong Kong

Hong Kong WinterFest

When does this event take place?
This event usually takes place between December and January to coincide with Christmas and the run-up period before Chinese New Year. Shopping malls will be adorned with festive decorations while ample retail discounts are available too.

Can you sell the festival?
Yes, this festival draws more group business because of the cooler weather in Hong Kong (during this period) and visitors will shop for Christmas presents.

We usually tell (our clients) when to come, particularly during the sales seasons. Apart from the usual sightseeing, we will reserve time for them to shop and provide them with discount coupons as well as latest shopping offers.

What challenges are there? Any improvements needed?
As a shopping paradise, Hong Kong relies heavily on mainland Chinese shoppers. Many retail outlets focus on them without considering the needs of other visitors who have different demands and needs.

There should be more synergy between industry stakeholders, such as hotels and retailers, to work on promotions together. Moreover, it would be better to weave in additional elements such as the Hong Kong Wine & Dine Festival, which attracts more foreigners than Chinese, to enhance the shopping experience. – Prudence Lui

Pornthip Hirunkate
Managing director,
Destination Asia (Thailand)

Amazing Thailand Grand Sale

When does this event take place?
Organised from June to August each year, this festival features discounts at participating merchants in Bangkok, Chiang Mai, Phuket, Hat Yai, Hua Hin, Pattaya and Koh Samui.

Can you sell the festival?
This event draws significant numbers from the region, mainly clients from the Asian market who travel to Thailand on short breaks and take advantage of the great savings on hotels and shopping bargains that are on offer throughout the sale period.

We do not develop special packages or tours for these types of promotions, but when clients arrive during these promotional period we advise them what’s on offer so that they can obtain the full benefits of any promotions.

What challenges are there? Any improvements needed?
The challenges are to ensure that we are putting out the right (advertising and marketing) message in order to create interest (in the sale). It would be good if the Tourism Authority of Thailand allocated more marketing budget to develop more media campaigns on all levels for all market sources.

We would definitely like to see more trade partners getting behind these campaigns with promotions from local wholesalers, travel (consultants) and airlines to support the festival. The more suppliers we can interest in the festival, the bigger and better it will become. – Greg Lowe

Ally Bhoonee
Executive director,
World Avenues Malaysia

1Malaysia Mega Sale Carnival

When does this event take place?
This carnival is always held between June and September in conjunction with the Middle East summer holidays to attract the Middle Eastern shoppers. Sales are nationwide.

Can you sell the festival?
The 1Malaysia Mega Sale Carnival is well-known in the Middle East thanks to promotions by Tourism Malaysia and tourism players from the private sector, but we still emphasise this carnival to our overseas partners. The ringgit’s appreciation against the dirham has made the carnival more attractive as there are big savings for travellers from the UAE.

Middle East travellers are independent shoppers. They like to stay in the Bukit Bintang area in Kuala Lumpur where there are many shopping malls. They know what they want and where to get them as many are repeat visitors to Malaysia, while first-time travellers have also done their research before travelling.

What challenges are there? Any improvements needed?
Having Arabic-speaking personnel at the information counters of shopping malls and Arabic flyers during the carnival will be helpful.

Participating outlets should also offer discount coupons and shopping vouchers to hotels, which will pass them on to guests upon check-in. – S Puvaneswary

Innovative storefronts

By Paige Lee Pei Qi

September 6, 2013

The physical store remains a vital link for travel consultants to inspire clients and sell travel.

FITCH

As travellers increasingly plan and book their holidays online, travel consultants can rise above the competition by offering a memorable holiday experience starting from their storefront, according to speakers at the Asia Fashion Summit 2013, which took place in Singapore in May.

Darren Watson, creative director of global design consultancy firm FITCH, said: “Most travellers today are using online as the default channel to look for everything from holiday inspiration and research to comparing prices and bookings to last-minute getaway bargains.

“Because this new technology is such an important catalyst for seamless travel shopping, it has, understandably, taken front stage but (travel consultants) should not neglect their travel stores to ensure it remains enjoyable and memorable.”

The physical element underscores every shopping experience, said Watson. “We all get excited about touching products we love, whether it’s a mobile phone or a new dress. For travel retail, it is about making the non-tangible feel real,” he added.

“Retailers should attract and engage customers at the front of the store, consider bringing dream destinations to life with a fully immersive and interactive postcard window and an entrance area based on a calendar of travel stories, placing the customers at the heart of the story.”

Jennifer Fall, Asia brand director of Galeries Lafayette, also agreed on the customer-centric branding approach. “We create compelling in-store experiences which bring our customers into the stores away from the Internet.

“We arrange fashion shows that are graced and performed by our customers because we want to tell stories and sell them an experience beyond just the products.”

Fall added: “The store is not dead yet and in fact it should have the most life because that is the only place where human contact can still occur.”

Aida Bayoud, vice president of retail at Value Retail Management China, concurred: “The Internet lacks the emotional aspect in the shopping experience.”

“Instead of just promoting unique travel destinations, why not make use of your retail space to start off as a unique destination on its own already?” she asked.

Highlighting the example of STA Travel UK’s new retail store concept for their global branch network, a project undertaken by FITCH, Watson said: “The store needed to reinvent the customer journey for a new generation of younger customers, to invite consumers into the space by allowing them to explore the possibilities of travel in-store.”

The revamp resulted in a redesigned store with dynamic and playful spaces to put customers at ease and engage them. According to Watson, this new experience has led to a seven per cent uplift in sales across STA’s network of stores.

As for ways to transform travel consultants’ offices into unique destinations, Watson suggested: “A store can be curated to allow themed explorations, based on the type of trip or featured location – beach getaways, adventures, city breaks – each using the senses to bring them to life.”

However, he conceded that there was no way a physical store could replicate the endless travel product selection available in an e-commerce shop. “Capitalise on the available visualisation technology by allowing customers to build their dream holiday journey with their advisor and preview it on a large screen,” said Watson.

“The retail shop is there to make travel shopping a joy-filled experience where people can dream of holidays, learn new things and have fun even before the actual holiday.”

Germany backs sustainable tourism in Asia-Pacific

By TTG Asia

September 6, 2013

THE German International Cooperation Agency (GIZ) is joining hands with PATA to develop a more sustainable Asia-Pacific visitor economy.

Under an agreement signed between the two parties, GIZ will provide PATA 75,000 euros (US$98,489) for the implementation of the Sustainable Development through Tourism Project in the region.

The project aims to create a “global information, exchange and learning platform” that will demonstrate how sustainability activities can boost business and contribute to the triple-bottom line by “aggregating, enriching and disseminating sustainability and CSR good practice”, said a PATA press release.

Martin Craigs, CEO, PATA, said: “This project will make it easier for tourism enterprises to develop and implement sustainable practices, to reduce their eco footprint, increase positive socio-economic impacts and contribute to the preservation and culture in Asia-Pacific.”

Central Coast Vietnam calls for Bangkok-Danang link

By TTG Asia

September 6, 2013

DESTINATION marketing organisation Central Coast Vietnam, encouraged by the recent launch of new flights to Danang, is hoping to see services from Bangkok resurrected.

The marketing entity – comprised of the area’s hotels, resorts and golf clubs – will collaborate with Vietnam’s Department of Culture, Sports & Tourism to conduct a roadshow in Bangkok later this month in the hopes of reopening the route between Danang and the Thai capital.

The route was last served by Thailand’s PB Air between 2007 and 2009, after which the carrier halted operations.

Louk Lennaerts, chairman of Central Coast Vietnam, said: “The central coast has never been as accessible as it is right now…But Danang’s new airport has the capacity to handle more traffic and we’re working to open those runways.”

This July, Vietnam Airlines began flights linking Danang to Seoul and Siem Reap (TTG Asia e-Daily, July 1, 2013), while Dragonair and Shanghai Airlines commenced services from Hong Kong and Shanghai respectively earlier in the year.

Minor Hotel Group aims for scale in expansion

By Greg Lowe

September 6, 2013

MINOR Hotel Group is focusing on building its footprint within Asia, Africa and the Middle East with a key focus on expanding city properties, said William Heinecke, CEO and chairman of Minor International.

While the company last December announced plans to double its size within five years, it currently does not intend to move into traditional western markets.

“Growth for us is international now,” said Heinecke. “We’re already the largest hotel company in Thailand. But we’re remaining focused. We’re not trying to go to Europe. We’re not trying to go to America. We’ve always said it’s (expansion) about scale.

“If you’d asked me three years ago if we’d go into Australia, I’d have said ‘no’. We didn’t have scale back then. We needed 40 to 50 hotels to get the tipping point, which we did through acquiring Oaks (Hotels & Resorts).”

City hotels are the fastest-growing segment for the group, which has more than 80 properties. Anantara is slated to open its first Dubai property this month with two Avani properties due to come online before the year-end.

Anantara recently acquired a property in Siem Reap, Cambodia, marking the brand’s first foray into the country. However, the group is adopting a wait-and-see strategy for Myanmar.

“There’s a huge rush into Myanmar now. The prices are astronomical and no one really knows how it’s going to pan out with the laws,” said Heinecke.

Meanwhile, Anantara has signed a deal to manage a five-star luxury resort in Tangalle in southern Sri Lanka, offering 154 keys including private villas with their own plunge pools. Due to open in February 2015, the name of the US$40 million property has not been finalised.

Back in Thailand, Heinecke said intense competition in Bangkok’s hotel market, especially at the high end, is healthy but hoteliers need to ensure they deliver value to raise rates in the long term.

He said he was “confident” of getting high rates in destinations such as Chiang Rai and Chiang Mai, where costs were much lower.

Additional reporting by Feizal Samath

Agora hotel breezes into Fukuoka

By TTG Asia

September 6, 2013

AGORA Fukuoka Hilltop Hotel & Spa marked its grand opening on September 1 and is now welcoming guests.

Perched on a hilltop in downtown Fukuoka and 30 minutes from Fukuoka Airport, the 48-key hotel offers a panoramic view of the city, a post-modernist design and Japanese-style tatami mat rooms.

The property boasts natural hot spring baths on the third floor, a fitness room, a library and the Hilltop Spa, run by world-class spa manager Kazuko Sendo who has worked for overseas companies such as Six Senses Hotels Resorts Spas.

Within hotel grounds are also the Hilltop Suite where guests can receive spa treatments on an open-air sun deck; the multi-purpose The Marcus Square Fukuoka including a bar, two wedding chapels, and event spaces able to accommodate between 90 and 250 guests; and F&B options Garden Restaurant K and Koyomi, which serves Japanese cuisine.

Agora Fukuoka Hilltop Hotel & Spa is the eighth facility in the Agora Hotel Alliance and fourth Agora brand hotel. Other Agora brand hotels are Agora Regency Sakai and Hotel Agora Osaka Moriguchi, both in Osaka, and Agora Place Asakusa in Tokyo.

Carlton City hones in on business travellers

By Karen Yue

September 6, 2013

CARLTON Properties (Singapore) has opened its second hotel in the Lion City and is seeing “satisfying” demand from corporate travellers, a segment the new Carlton City Hotel Singapore is keen on.

Within the first few days of its soft opening on August 5, the 386-room upscale business hotel in the Tanjong Pagar business district saw more than 100 rooms occupied, according to general manager Mark Bulmer.

“It is difficult to define how occupancy has been since our soft opening, as our rooms are coming online progressively. However, we are impressed with the speed at which bookings are picking up along the way. There is now a steady flow of business from the offices nearby.

“All facilities are open, and by the end of this week we will have 300 rooms operational,” said Bulmer.

Bulmer believes that the hotel’s prime location and inventory of “functional and good-sized rooms compared with other new hotels in Singapore” will win the favour of business travellers.

The hotel’s Deluxe, Executive and Carlton Club rooms all measure 32m², while the Carlton Suite offers 64m² of space. A three-metre high ceiling further enhances the spaciousness of all rooms. Besides presenting clear views of the harbour or the city through large windows, the rooms are also furnished with plush carpets, quality bedding, a large work desk with an ergonomic chair, a roomy bathroom with a separate bath and standing shower.

Complimentary Wi-Fi across the hotel is available to all guests.

Other facilities include a stylish Club Lounge on the 28^th floor, four dining outlets including a rooftop bar that is available for private event hire, and an outdoor pool with a Jacuzzi.

“I would like to see 75 per cent of the business coming from corporates. Although we will primarily target the offices around the central business district, Singapore is small so we will also reach out to offices elsewhere in the country,” he said, adding that his team has been working with travel consultants to garner weekend bookings from leisure FITs.

Jacqueline Ho, director of sales and marketing with the hotel, said: “Although the hotel is in a business district, it is a short walk to the train station (Tanjong Pagar MRT Station) and close to Chinatown. This location is gaining popularity among leisure travellers.”

Bulmer also expects the hotel to do well during the coming F1 race season, which will see Deluxe rooms going for S$350++ to S$400++ per night. This compares with the current opening promotion corporate rate of S$258++, inclusive of breakfast.

Malaysia nurtures Middle East market

By S Puvaneswary

September 6, 2013

TOURISM Malaysia has set its sights on the relatively untapped Middle East market, having identified tourists from this region as notching the highest spend and staying the longest at an average of 8.1 nights.

Mirza Mohammad Taiyab, director-general of Tourism Malaysia, said the Middle East market has huge potential for growth. According to projections by the United Nations World Tourism Organization, outbound travellers from the Middle East will soar from 38 million tourists in 2010 to 57 million in 2020 and 81 million by 2030.

In light of such a favourable outlook, the NTO is aiming to draw 295,000 Middle East arrivals this year and 332,000 next year.

Mirza said Tourism Malaysia’s ongoing campaign in the Middle East, Feel At Home, has mobilised the private sector in the construction of more residential accommodation for Arab families.

“Some opened restaurants serving Middle Eastern cuisine, while others created special events such as the Arab Cultural Week during the peak Middle East travel period which coincides with the summer holidays.

“To showcase the moderate face of Muslim Malaysia, homestay programmes are promoted to this market as it provides tourists to Malaysia with an insight into the authentic way of life in a typical village and they get to stay with a Muslim family. This programme fosters a greater understanding of Malaysians and closer relations between the host family and guest,” he explained.

He also remarked that the NTO’s Malaysia Truly Asia brand has been a success as it has made tourists, regardless of faith or sexual orientation, feel comfortable about visiting Malaysia, knowing that they would be accepted and not discriminated during their time there.

Tourism Malaysia’s other promotion efforts in the region include the presence of offices in Dubai, Jeddah and Tehran, and participation at the annual Arabian Travel Market.

FRHI makes senior leadership appointments

By TTG Asia

September 6, 2013

FRHI, the parent company of hotel brands Fairmont Hotels & Resorts, Raffles Hotels & Resorts, and Swissôtel Hotels & Resorts, has made a number of new appointments to its senior leadership team.

Jennifer Fox has been promoted to president, international and will relocate to Zurich to lead hotel operations for FRHI’s international division, including the subregions of Europe, Middle East, Africa & India and Asia-Pacific.

She will also oversee the company’s hotel openings & integration team, while retaining her position as president, Fairmont brand.

Jeff Senior is now executive vice president and chief marketing office for FRHI, a newly created role in which he will be responsible for all FRHI sales and marketing activity including global sales, corporate branding, digital marketing, public relations, marketing partnerships, loyalty marketing, revenue management and analytics.

He was most recently executive vice president, marketing & sales.

Malaysia intensifies courtship of association events with new initiative

By S Puvaneswary

September 5, 2013

MALAYSIA Convention & Exhibition Bureau (MyCEB) has launched the Association Development Programme (ADP) to support the development of the country’s associations and encourage the hosting of international conventions.

Under the new programme, member associations are entitled to a variety of strategic initiatives such as financial and non-financial bid support and international engagements. A series of association management and conference planning seminars will provide training for association officers.

Commenting on MyCEB’s latest initiative, Yap Sook Ling, director of AOS Conventions & Events Malaysia, said: “ADP is good as it will help associations to better understand the bidding process, which in turn will make it easier for PCOs and DMCs to work with them. It will also help associations understand that there are many opportunities available for them to bid for world and regional meetings.

“Many associations still think that the job of DMCs merely involves booking of hotels and ballrooms. ADP will dispel that notion and create a better awareness of what is involved in making an international conference successful and the tools that are available, such as specialised software that can be used for the entire event, from registration to session booking to delegate payment.”