Manila security alert tests destination image

October 3, 2012

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

By Linda Haden

October 3, 2012

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

By TTG Asia

October 3, 2012

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

By Mimi Hudoyo

October 3, 2012

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

By Linda Haden

October 3, 2012

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

By S Puvaneswary

October 3, 2012

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

By TTG Asia

October 3, 2012

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.

Birthday bling for IT&CMA and CTW

By TTG Asia

October 2, 2012

SEVERAL new features will augment the quality of the annual IT&CMA and CTW shows this year, as they celebrate their 20th and 15th anniversaries respectively.

Highlights include the creation of a Global Networking Zone within the exhibition hall; a new networking session for travel managers and exhibitors at the foyer of World Ballroom, Bangkok Convention Centre at CentralWorld on October 2; a first-ever smartphone application dedicated to IT&CMA and CTW; and a complimentary King Power Corporate Card for all international delegates, which grants cardholders discounts at selected merchants.

While IT&CMA and CTW used to share a common website, each has been given its own website this year, promising a distinct identity for the two shows.

Darren Ng, managing director of TTG Asia Media, which organises the double bill, recalls the launch of IT&CMA in 1993 and CTW in 1998, at a time when “both MICE and corporate travel were still relatively new concepts”.

Since its launch, IT&CMA has been held in Hong Kong (1993-1996), Kuala Lumpur (1997-2001) and eventually Bangkok since 2002, with the exception of 2005 and 2006 in Pattaya. Meanwhile, CTW was moved from Singapore to Thailand in 2004 to be co-located with IT&CMA.

Both shows have grown in strength and scale, with editions of IT&CM now held in Shanghai every April and New Delhi every August.

The rise of IT&CMA over the past 20 years is captured in a limited edition book that is distributed to event partners. An electronic version can also be viewed at www.itcma.com.

Moving forward, Ng hopes to see continued partnership with the Thailand Convention & Exhibition Bureau, which has supported the events since 2002. He said: “Thailand’s rising strength as an important MICE destination in Asia promotes not just Thailand as a destination, but contributes to the collective strength of Asia’s ability to offer limitless MICE opportunities.

“That is why the event takes the lead in having the strongest representation of Asia-Pacific MICE and corporate travel suppliers in comparison to any other show in the world. This is testament to our region’s readiness to cater to these segments in terms of both diversity and infrastructure.”

Sponsors cut back funding for associations

By Raini Hamdi

October 2, 2012

ASSOCIATIONS are facing difficulty in getting sponsorships and the consequences are dire for those that have allowed themselves to be hugely dependent on this revenue stream.

Since the GFC, major corporations have become more selective about what they support and demand more ROI from their sponsorships. Association professionals interviewed expect the trend to continue in the foreseeable future as there has been no end in sight to economic uncertainties in the eurozone and the US, which have now impacted Asia as well.

“Most associations would say that over the last two years, sponsorship has been more difficult than it has been in the past. Some major companies have withdrawn completely, while others are selective about what they support. There is no indication that’s going to change,” said Simon Pryor, CEO of Melbourne-based Mathematical Association of Victoria.

The association itself lost Hewlett-Packard (HP) as a sponsor, although HP continues to be an exhibitor at its event. It was able to secure Casio after making a strong business case to it.

“Essentially sponsors want access to delegates. If you are, say, the orthopaedic surgeons association, then there’ll be a pharmaceutical company or a manufacturer of prosthetics that wants to reach out to your members. To get sponsorship now, you have to think more carefully about the exhibition you run alongside the education programme so you give the sponsors as much access to the delegates as possible,” Pryor said.

Dave Cybak, executive vice president of the Canadian Society of Association Executives (CSAE), urged associations to customise their sponsorship offer to companies rather than take a one-size-fits-all approach. To further increase the ROI for sponsors, associations also must be proactive in educating companies on how best they can engage their members, and follow up regularly with sponsors following the event on targets outlined.

“Sponsors don’t understand the association market. Often, they do a direct ‘here’s what I want to sell’ approach as they come from sales-oriented backgrounds. Often, that does not work. You have to demonstrate to them that you’re supporting their profession, association, mission and vision,” Cybak said.

Cybak noted the impact of reduced sponsorships on associations could be devastating.
“We need the revenue to produce the products and services that provide value for our members. If we don’t see it coming from sponsorship, we either need to sell quite a number of new memberships and more conference registrations to make up for that sponsorship loss, or reduce costs, which often means a reduction in services to members.

“But that results in a vicious circle – members will then question why they are renewing their membership at the same fee when they are getting less service from their association,” he said.

Cybak said there had been increased dependence on sponsorships as a source of revenue since the early years of this century, as it was “easy and seductive”. He warned that if associations got a third of their revenue from sponsorships, they had “a risk management” issue.

CSAE was putting up more conferences, face-to-face and online education programmes, as well as publishing and distribution activities to diversify revenue streams. “I would suggest up to 40 per cent is the right percentage of revenue from membership dues, 10 per cent from sponsorship and the rest from conferences, etc,” he said.

Starwood rolls out education programme for travel trade

By TTG Asia

October 2, 2012

STARWOOD Hotels & Resorts has kicked off its global resorts campaign for 2012, which aims to both educate and reward travel industry members.

Travel professionals can Explore Destinations, Experience Luxury, and Earn Rewards by viewing a four-minute video designed to introduce the company’s range of resorts and travel options in various destinations around the world.

The video can be viewed at www.starwoodpro.com, the group’s web portal for trade players, and is available from October 1-14.

After completing the module, travel professionals will get a second night free when they book one resort night via the ProLearning page by December 31, 2012. The stay is valid from December 1, 2012 through December 31, 2013.

Chris Austin, vice president, global retail leisure and luxury sales for Starwood Hotels & Resorts, said: “We want our partners in travel to understand all the options we provide their customers, and we want our travel professional partners to experience it for themselves. We hope to welcome thousands of travel professionals to our resorts in the coming year as a result of this promotion.”