TTG Asia
Asia/Singapore Monday, 22nd December 2025
Page 2545

Adapt products to suit Chinese tastes, urges Spain’s tourism minister

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INSTEAD of splashing the cash on promotions to woo the Chinese outbound market, Spain’s tourism minister has urged the country’s tourism players to adapt their products to better appeal to Chinese preferences.

Speaking at World Tourism Day in Maspalomas, Gran Canaria last week, the Spanish Secretary of State for Tourism, Isabel Borrego, said that while China was now the third largest outbound market in the world, Spain still lacked an adequate range of tourism products to meet its demands.

Borrego advised local tourism industry stakeholders to learn more about the profile of Chinese tourists and their individual needs, and to adapt their products and services accordingly.

Inbound tourism from China is likely to see a boost in the near future with the easing of visa procedures – already kickstarted following a recent visit to China by Industry, Energy & Tourism minister, José Manuela Soria.

While there, Soria signed agreements with local tour operators to introduce Spain’s new visa system. Called Visatur, the system has made visas to Spain available through three cities in China, and is similar to the one launched for the Russian market.

The new system has already boosted Russian tourist numbers to Spain by 47 per cent this year so far, Borrego revealed.

SilverNeedle Hospitality offers commissions though new GDS code

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SILVERNEEDLE Hospitality has tied up with property management system myfidelio.net in a GDS partnership, launching its own private-label chain code, SD, yesterday.

To mark the launch, SilverNeedle is offering a 15 per cent commission to travel consultants on daily rates booked at any SilverNeedle property included under the SD code.

The code, which stands for SilverNeedle Destinations, allows travel consultants to locate and book hotels within the group’s portfolio of brands. They can also check rates, availability and make reservations instantly.

“As a leading hospitality brand in the Asia-Pacific region, SilverNeedle Hospitality’s new SD private-label chain code will ensure we are more connected to travel professionals, growing the company’s volume of business originating from this critically important market segment,” said Iqbal Jumabhoy, managing director & group CEO, SilverNeedle Hospitality.

“It will also enable us to provide preferred rates, room types, special promotions, as well as best rate availability across the company’s diverse portfolio through all GDS and online distribution channels.”

Key properties under the Grand Chifley, Chifley, Australia and Country Comfort brands are already live under the SD code, with further properties operated by SilverNeedle Hospitality in the Asia-Pacific region to follow shortly.

Double whammy for travel managers

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CORPORATE travel managers in Asia are battling the double whammy of tighter travel budgets and increased travel costs as a result of rising inflation.

With the eurozone debt crisis dampening economic sentiments, companies that have not instituted cost cutting are doing so now. UGL in Australia, which has been able to resist snipping the travel budget since the GFC unfolded in 2008, yesterday announced a major exercise to reduce travel costs by 15 per cent.

“The directive is from the top. Everything is softening a bit, so we want to be smart in the way we pay for our travels. The intention is not to reduce volume as we’re client-driven, but cost,” said UGL’s category manager, shared services procurement, Premah Krishnan, based in Melbourne.

Among measures are reviewing the eligibility of whom can travel business class; reducing the class of city hotels without compromising the safety and well-being of travellers; and mandating an approval from the higher levels for any trip request made within four days or less.

Asked how the new directive would impact her work, Krishnan said: “It’ll be more work because we have to provide monthly or even weekly data to show costs are actually dropping, so we would need to track where the non-compliance is coming from.”

Another travel manager, June Lai, assistant administration manager of Ingram Micro Asia Pacific based in Singapore, said her company had been in “cost-cutting mode” on travel spending since 2008, but rising airfares and hotel rates each year posed a real challenge to savings.

She said: “Our people used to be able to travel business class; we’ve cut that back to economy. While there are no more cuts, we constantly have to look at hotel rates, fuel costs, taxes, etc, which are increasing every year and are beyond our control.”

Observed Dean Fowles, principal, T&E management, global sourcing-services of Rio Tinto in Singapore: “Travel costs continue to go up in Asia-Pacific. Costs never went down in Japan even when it went into recession. Whenever there’s a bad time in Hong Kong, rates do not fall, occupancies fall. Airfares are also not going down – carriers are now good at controlling capacity.”

Joseph Bates, senior director-research of the Global Business Travel Association (GBTA), agrees that inflation in emerging economies, which pushes up costs, is compounding the squeeze being felt by Asian travel managers.

“It is tricky. The developed economies are pumping more money to get growth, which only makes it worse for emerging economies as all that liquidity results in higher inflation,” Bates said.

Yesterday’s closed-door GBTA Global Travel Management Forum saw inflation in Asia and cost of travel as the key concern of travel managers, said Bates.

Asked what advice he had for travel managers, Bates said: “For those whose companies are cutting the travel spend, travel managers must send across the message that while it’s prudent to keep travel in line with lower sales projections in any slowdown, a cut which is further than necessary will hurt their business and the economy.

“As well, to budget for inflation, use available data and information on inflation, so they don’t end up grappling with rising costs which are beyond their control.”

GBTA’s latest Business Travel Index shows the euro debt-crisis hitting the global GDP and global business travel hard. Its projection is for global business travel spend to grow 4.6 per cent this year – half of the growth last year – to US$1 trillion, subject to Europe’s recovery.

Manila security alert tests destination image

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A SECURITY alert issued by the US Embassy in Manila lasting until October 10 raises old questions about safety in the Philippines for foreign visitors.

On September 28, the US Embassy warned that a threat against American citizens had been detected in metropolitan Manila, specifically the Pasay City neighbourhood. While the threat was unspecified, the embassy advised its citizens to “exercise caution”. Security has since been stepped up at government facilities in the area.

The warning was followed by similar advisories from the British, Canadian and Australian embassies to their respective Manila-based nationals.

Delegates at last week’s PATA Travel Mart in Manila told TTG Asia e-Daily that safety in the Philippines, including its capital, remained a key concern for international visitors.

“For French tourists, security is their top concern,” said Abdel Halim Karoun, executive director, Besoin de Partir Lyon. Besides the Philippines’ “lack of image”, prospective visitors tend to be “afraid” and want others to try the destination first, he explained.

Luigi Petrosillo, managing director, Asia Holidays Rome, said his customers often asked about security and previous kidnapping incidents when considering the Philippines as a destination. “The problem is the Philippines doesn’t spend enough to raise awareness of the good things,” he lamented.

So far, no official statement has been issued by the Philippines’ Department of Tourism regarding the alert.

Aileen Clemente, president, Philippine Travel Agencies Association and president, Rajah Travel Corporation Manila, said: “There is a difference between perception and reality, and the problem is making announcements that affect (wide) areas. Security alerts should be very specific about which areas are affected.”

Loubelle Mercado, sales & marketing supervisor, Rajah Travel Corporation, said: “We normally verify the advisory and check that the destinations we are offering are not affected. If there is an incident in (a particular) area, we will revise the itinerary or offer another destination.”

GTMC Travel sets up shop in Indonesian capital

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SINGAPORE-headquartered GTMC Travel, which specialises in the global wholesale of outbound travel products and regional inbound ground operations, inaugurated a new office in Jakarta on September 1, in a bid to carve a slice of the burgeoning Indonesian outbound market.

GTMC Travel has had a presence in Indonesia through a local representative since mid-2011. The success of this pilot project led to the establishment of its latest wholly owned outpost. Currently, the office is manned by four employees, but going forward the company hopes to raise this figure to 10.

“We felt it was the right time to establish a local presence to grow bookings from Indonesia, which is projected to see further increases in economic and disposable income in the near future. There was a definite need for us to get in closer touch with local travel consultants,” said Samson Tan, CEO, GTMC Travel.

“Through this move, we aim to achieve a target of servicing over 60,000 passengers from Indonesia next year. Jakarta will be our starting point, but we are considering opening offices in other parts of Indonesia at a later stage.”

After Indonesia, GTMC Travel is looking to make its mark in Greater China, including Taiwan and Macau. “We hope to establish joint ventures with partners there in a similar vein to the one we have with Vitours in Vietnam (TTG Asia e-Daily, May 3, 2012), hopefully by the first quarter of 2013,” said Tan.

EU’s MICE sluggish still

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GROWTH in outbound MICE to Asia remains flat in many European markets, which has already registered a slowdown over the past year due to the tightening of budgets amid a weak economic climate.

Said Tony Vanvinckenroye, CEO of White Reizen Belgium: “Europe is still in recession. People are travelling just once a year now, instead of two or three times per year.”

Besides unfavourable exchange rates, some consultants also singled out airfares as the primary obstacle to growing outbound MICE travel to Asia.

Gordon Owen, Messrs G Owen & Co, said: “Airfares are a major disincentive for MICE travel, especially when corporate budgets are tighter and companies must demonstrate a financial return on travel for meetings or seminars.

“Asia (offers) better value by far, but for a group of 70-100 delegates, the cost of travel to Asia is high which evokes hesitation from travel managers.”

Asia still commands interest from MICE groups though, driven by its growing air connectivity and infrastructure.

Signalling its competitiveness, South-east Asia has managed to steal cost-conscious European clients from Australia.

Marc Lambert, owner of Antipodes Voyages Belgium, which usually drives most of its traffic to Australia, has seen a 20 per cent rise in the number of MICE groups to South-east Asia this year. He said: “Because the (Australian) dollar is so high, clients are switching to New Zealand and South-east Asia instead.”

Singapore and Thailand top the region as MICE destinations, said European buyers at IT&CMA and CTW, who observed that Singapore attracts meetings, while Thailand is popular among incentive groups keen on multi-country travel.

Reporting by Timothy France

Indonesia courts its own

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LOCAL government offices have become the latest target audiences of the Indonesian Ministry of Tourism & Creative Economy, which is planning a MICE show aimed at driving government-level meetings and events to 14 destinations across the country.

The destinations identified for MICE development are Jakarta, Bali, Bandung, Jogjakarta, Makassar, Surabaya, Medan, Manado, Semarang, Batam, Lombok, Solo, Palembang and Padang-Bukittinggi.

Explaining the move, deputy minister of tourism & creative economy, Sapta Nirwandar, said: “The government offices have so many meetings.”

He noted that the Ministry of Foreign Affairs, for example, would conduct international and domestic meetings of various sizes, while each directorate general in the Ministry of Public Works would host its own series of meetings.

Recognising that each government organisation has its own policies on meetings and events, Rizki Handayani, director of MICE & special interest marketing with the Ministry of Tourism & Creative Economy, said: “We are collecting data from the various government departments on the decision-makers and the meetings they organise.”

Handayani has learnt that there are six directorate generals in the Ministry of Public Works, and each hosts two coordination meetings with stakeholders around Indonesia every year. Each meeting is attended by 1,000 to 1,500 delegates. These exclude other smaller gatherings held annually.

Handayani pointed out that many government agencies were unaware of the development of MICE facilities and infrastructure around Indonesia, so a MICE show connecting central government officers with Indonesian MICE stakeholders would be beneficial.

The ministry has yet to decide on the show’s format, and one possible arrangement is a tabletop travel mart where local city or tourism government officials and MICE stakeholders are invited as sellers and central government officers as buyers.

Jogjakarta Tourism Office director, Tazbir Abdullah, welcomed the initiative, saying that it would enable the city to showcase its MICE potential, facilities, packages by DMCs and hotels, and the extent of incentives and support available to event planners.

He added that Jogjakarta was ready to host government agencies on fam trips to tour the city’s MICE facilities.

Indonesia Tourist Promotion Board board member, Didin Junaedi, said “an event like this” would drive government events beyond the usual mature destinations in Indonesia, such as Bali and Jakarta.

Iskandar Malaysia not quite Orlando yet, say buyers

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THE mainstream media have repeatedly described the Iskandar Malaysia region in Johor as the Orlando of South-east Asia, but according to buyers at the recent PATA Travel Mart in Manila, this label needs to be taken with a pinch of salt.

Tushar Jain, director, BTC Tours & Travel New Delhi, said it would be difficult for Iskandar Malaysia’s theme parks to gain a following among Indian travellers, given the overwhelming popularity of Universal Studios Singapore.

“There’s hardly been any promotions in India for Legoland, Sanrio Hello Kitty Town and The Little Big Club. Indians have therefore been left in the dark about these new theme parks,” he said.

“Secondly, the parks in Iskandar are aimed at young children, whereas Universal Studios Singapore caters to all ages. From a business perspective, it makes more sense for us to bring clients just to Universal Studios when they visit Singapore.”

According to Leo Chan, marketing manager, Charlotte Travel Hong Kong, visitors from Hong Kong to Singapore would see little sense in heading over the border to Johor unless “they were die-hard Hello Kitty or Lego fans”.

“When Hong Kong tourists visit Singapore, they stay for only four days. They do not want to visit more than one theme park (besides Universal Studios) during that time, especially if they have to travel out of Singapore. However, they might hop over to Johor on subsequent trips,” he said.

Dennis Law, managing director, Star Holiday Mart Singapore, was also circumspect about the prospects for the Iskandar theme parks in drawing visitors from outside Malaysia and Singapore.

“Iskandar currently suffers from a lack of tourism infrastructure such as hotels and restaurants to make the region an attractive and viable destination for foreign travellers. This might change in future, but for now, this is a sizeable obstacle,” he said.

“Cost is another impeding factor. Visitors have to fork out around US$85 each to visit all three Iskandar theme parks. However, if the parks can band together to develop value-for-money packages, they might just be able to draw visitors from Singapore and other parts of Malaysia,” he added.

Bhutan tourism on uptrend despite tariff hike

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THE hike in daily tariff in Bhutan earlier in the year (TTG Asia e-Daily, February 7, 2012) has not slowed tourism business for the kingdom.

Bhutan sellers at the recent PATA Travel Mart in Manila said they had registered a double-digit growth in visitor numbers since the beginning of the year, and attributed this to heightened awareness of the destination and its catchy slogan, Happiness is a Place, introduced by Tourism Council of Bhutan in March 2011.

In January, the daily tariff for tourist groups of three pax or more was raised from US$200 to US$250 a night during high season, and from US$180 to US$200 a night during low season.

Despite the tariff hike, Choki Dorji, managing director, Blue Poppy Tours & Treks Thimphu, said he had so far registered a 35 per cent year-on-year increase in arrival numbers for 2012. His main markets include the US, Japan and Germany, with groups spending an average of seven to 10 nights.

Laxmi Sherpa, general manager, Sacred Himalaya Travel Thimpu, observed double-digit growth this year from the US and China. She is now looking to tap new markets such as South Korea, Japan and Singapore through participation at international travel trade fairs.

Laxmi pointed out that the tariff was not particularly costly, taking into account its all-inclusive nature. “It includes accommodation in a twin-sharing three-star hotel, all meals, tours with a licensed tourist guide, internal taxes and charges, transport and transfers. You are well taken care of,” she said.

Russell Oquist, president, MG Tour Company US, explained that the raised tariff had little impact on his clients, who are mostly from the middle- and high-income brackets. “The destination appeals to the adventurous and for those looking for something beyond the ordinary,” he said.

However, Oquist said the challenge in selling Bhutan was the unavailability of direct flights from the US. His clients usually pick Bhutan as part of a twin-destination holiday programme, leveraging onward connections to Paro from cities such as Kathmandu, Bangkok and New Delhi.

Hotel rates rise across Asia: Hotels.com

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THE latest Hotels.com Hotel Price Index (HPI) has revealed that hotel room rates are soaring across most of Asia, as the region continues to recover from the disasters and crises of 2011.

During the first half of 2012, hotel room rates in Asia rose four per cent year-on-year to stand at 108 on the HPI. Even though this was 18 per cent lower than its high in 2008, the recovery hints that the industry is back on track as travel to and within the region returns.

Prices in Singapore climbed by just one per cent to S$232 (US$188) per night, but key rival Hong Kong experienced a 13 per cent surge to S$219, while rising business hubs such as Seoul (up 23 per cent to S$200), Jakarta (up 16 per cent to S$167), Kuala Lumpur (up seven per cent to S$141) and Shanghai (up five per cent to S$138) recorded impressive uptrends.

Elsewhere in China, prices had their ups and downs with Guangzhou up two per cent to S$105 and Beijing stuck on S$136 as rates remained flat. Hangzhou fell 12 per cent to S$124 and Shenzhen was down six per cent to S$98.

Macau climbed 12 per cent to S$193, while Taipei was up 10 per cent to S$152, thanks to growing demand from China and an improving hotel stock.

In Japan, Sapporo rose 24 per cent to reach S$147, Kyoto saw its average price rebound by 13 per cent to S$192 and Tokyo was up two per cent to S$189. However, Osaka registered a drop of seven per cent to S$149.

In Thailand, Krabi was up by 15 per cent to S$147, Phuket rose 10 per cent to S$161, Koh Samui increased nine per cent to S$260, but Chiang Mai dropped 20 per cent to S$94.

The Indonesian island of Bali saw a rise of 11 per cent to S$237 while, in Malaysia, Langkawi rose seven per cent to S$252 and Penang was up one per cent to S$133.

Elsewhere, Cambodia’s Siem Reap saw its average price fall nine per cent to S$107, while Phnom Penh dropped 25 per cent to a great value rate of S$82. In Hanoi, rates were down 26 per cent to S$92.

*The latest HPI reflects the actual prices paid by travellers from Singapore in Singapore Dollars (S$) during the first half of 2012 compared to prices paid in Singapore Dollars for the same period in 2011.