Iskandar Malaysia not quite Orlando yet, say buyers

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.”

Nepal guns for MICE

By S Puvaneswary

October 2, 2012

A NEW MICE department under the Nepal Tourism Board (NTB) will be formed by year-end, with a focus on drawing business events from neighbouring markets.

The department head will report directly to the NPB CEO.

NTB’s public relations & publicity department director, Aditya Baral, said: “The main MICE markets we will attract are India, Bangladesh and Sri Lanka due to short flight distance and availability of direct flights. Our secondary targets are South-east Asia – Malaysia, Singapore and Thailand – because there are direct flights too.”
The kingdom is able to cater to meeting groups of 500-700 delegates, according to the spokesperson.

CEO of Eventworld UK, Michael Packford, said: “Having a MICE department will be a two-way learning process for us and for the department, as the requirements of top corporate people are very different from that of leisure travellers.

“Nepal is associated mainly with adventure and leisure. You never see Nepal exhibiting at MICE shows. A MICE department will be able to create more awareness on what the destination has to offer to meeting and incentive planners.”

Richard Jordan, partner, Blue Chip Events in Oxford, UK, said: “Nepal makes an exciting add-on to a meeting and incentive held in India. The MICE division will be able to give us insider tips on the cultural things we can do in Nepal and provide us with information on MICE facilities. In the future, we could even take a full event to Nepal. We have clients in the education sector who have been to India and would love to visit Nepal.”

He said NTB’s MICE division would decrease clients’ current dependence on India-based DMCs, an arrangement that tended to influence destination choice in favour of India.

Durban’s D&Y Travel Concept managing director, Paul Ramjugernath, said: “Currently, we use a leading agent from India because we do not have direct contacts in Nepal. This agent makes 30 per cent. With a MICE department, we will have direct contact (with Nepal sellers), allowing us to cut out the middle man.”

Shangri-La Hotel & Resort Nepal’s senior general manager, Raju Bikram Shah, applauded NPB’s move, saying that Nepal has capitalised too much on trekking tours. He said: “The yield from MICE will be at least double that of leisure tourism.”

Currently, Nepal has 7,000 guest rooms of all categories and is served by 31 foreign airlines.

(It was reported in the original copy that the Nepalese government is providing a grant of Rs500,000 (US$9,483) to meeting planners with groups of at least 100 foreigners. This grant has, in fact, expired.)

Tiger Airways, Scoot sign MoU for joint itineraries

By TTG Asia

October 2, 2012

TIGER Airways and Scoot yesterday sealed a Memorandum of Understanding that will see the two low-cost carriers offer joint itineraries, with the initial phase beginning today.

Under the initial phase, customers may purchase a single itinerary for travel from Sydney or Gold Coast in Australia, served by Scoot; to Phuket, Ho Chi Minh City or Kuala Lumpur in South-east Asia, served by Tiger, via a transit in Singapore.

Passengers travelling from Australia to South-east Asia will be issued a single ticket containing all flight details and are entitled to 15kg check-in baggage allowance. On arrival in Singapore, they will be required to pass through immigration and collect their bags before checking into the second leg of the flight.

The two airlines are looking to implement a direct connection process to remedy this, which will allow passengers to transit to their next flight without passing through immigration or collecting baggage.

“Both carriers operate highly complementary networks, with Scoot focusing on medium-long haul routes of five or more hours, and Tiger focusing on shorter-haul journeys,” said Scoot CEO, Campbell Wilson.

“With Tiger’s move to our new den at Changi Airport Terminal 2, it’s the perfect time to leverage the strength of our networks to our customers’ benefit. The joint itineraries and new services we will be rolling out will greatly expand the travel options for both Tiger and Scoot customers,” said Tiger Airways Group CEO, Koay Peng Yen.

Brendan Sorbie, chief representative South-east Asia, Centre of Asia-Pacific Aviation, told TTG Asia e-Daily: “Tiger needed to revaluate its business model and its approach to partnerships. To grow and perhaps even to survive it needs to embrace a new model, which includes working with other carriers.”

“Scoot, as a long-haul carrier, needs feed if it is to become a viable entity of decent size, and Tiger is the most logical partner,” he added.

Joint itineraries originating from Australia are available for sale from today, for travel from October 15. Air tickets for travel departing South-east Asia will be available for sale and travel from November 2.

Cox & Kings India to launch education tours

By Shekhar Niyogi

October 2, 2012

ONE year after acquiring specialised education tour company Holidaybreak UK, Cox & Kings will kickstart education tours in India in 2013, and expects a 25 per cent ROI in developing this niche segment.

Peter Kerkar, executive director, Cox & Kings, said: “Education tours will be rolled out in India next year and the company is developing a site within the country for its education tours. Our strategy is to become education tour specialists. We have done market studies and have held discussions with 300 schools.”

Typically, Indian education tours have a group size of 30-40 students accompanied by three or four teachers. Textbook learning is augmented by visits to historical and cultural locations under the supervision of trained guides and teachers.

The current size of the outbound education tours market in India has grown to about 80,000 annually. Trade experts are bullish that the yearly growth of 20-25 per cent is sustainable for several years to come.

Sanjay Maniar, director, Travelaid Kolkata, said: “Most good schools are recognising the fact that students, travelling with their peers under supervision of their teachers, learn to experience other cultures and norms and, most importantly, see places that they have only read about. This experiential learning is priceless.”

Changi Airport, SIA & SilkAir tie-up to offer Singapore stopover packages

By TTG Asia

October 2, 2012

CHANGI Airport Group (CAG) has renewed its partnership with Singapore Airlines (SIA) and SilkAir to introduce a series of stopover packages.

Starting from S$54 (US$44) per night, promotional rates for these packages will last from now until March 28, 2013 and are valid for travel between October 1 and March 31, 2013.

The Singapore Stopover Holiday packages bundle hotel accommodation with complimentary transfers, unlimited rides on the SIA Hop-on Bus, and free admission to 14 key attractions including the Singapore Flyer, MINT Museum of Toys, HiPPO RiverCruise, Singapore Zoo and National Orchid Garden.

Packages comprising only accommodations and transfers are also available.

Peh Ke-Wei, vice president for passenger development, CAG, said: “This is a great time to visit or stop over in Singapore, especially with the many new and exciting tourism developments. We would like to encourage travellers to take advantage of the attractive Singapore Stopover Holiday packages being offered to come and experience Singapore and Changi Airport.”