KTO means business with event subsidies

February 22, 2012

EVENTS headed to South Korea from now until 2015 can qualify for goodies handed out by the Korea Tourism Organization (KTO) as part of its 2012 Korea Convention Year campaign.

Conventions that meet UIA meeting criteria, and meetings and incentives with more than 100 overseas participants will enjoy up to 10 per cent off meeting venues, up to 40 per cent off hotel room rates, as well as complimentary upgrades, welcome amenities, site inspections and traditional entertainment. Events with more than 500 Asian participants or more than 1,000 international participants may obtain further airline discounts.

In an interview with TTG Asia e-Daily, KTO assistant director, MICE strategic planning team, Lee Hyeonjin, said the 2012 Korea Convention Year was the highlight of the destination’s 2010-2012 Visit Korea Year campaign (TTG Asia e-Daily, November 14, 2011).

“South Korea’s convention business has been growing rapidly, but the industry’s focus has so far been on infrastructure development. We want to now focus on using software and content to promote South Korea as a MICE destination.”

Apart from increased subsidies and support, the bureau will also host overseas roadshows to raise awareness of the destination, invest in advertising campaigns and host fam trips, in May and July for the US/Europe markets and Asia-Pacific market, respectively.

The bureau will also organise roadshows to Geneva and France, where most association headquarters are based.

“South Korea has been too dependent on incentives, so it is time to grow our association meetings,” said Lee.

Starwood woos MICE planners with new platform

By TTG Asia

February 22, 2012

STARWOOD Asia Pacific Hotels & Resorts today announced its newly-launched StarwoodMeetings.com, while also reiterating its aggressive growth plan in Asia-Pacific with 50 hotel openings this year.

Developed to make MICE bookings more user-friendly, StarwoodMeetings.com allows access to more than 1,000 properties worldwide. Meeting planners can view full property details, integrated maps with points of interest, photos and floor plans, on-site meeting services, special offers, as well as utilise a Compare View tool and meeting management tools.

The new site also includes information on signature services including the Starwood Preferred Planner, Starwood Convention Collection and On-Site Specialty Events.

“StarwoodMeetings.com was designed to increase the ease of doing business with Starwood,” said Christie Hicks, senior vice president, Starwood Sales Organization.

Meanwhile, Starwood is scheduled to open 50 new hotels in 2012, including the Sheraton Macao Hotel, Cotai Central in September. Featuring 3,863 rooms and suites and 20,000m2 of meeting space, it will be the largest hotel in the company’s portfolio.

Other hotels scheduled to open this year include three properties in Bali – The Westin Ubud Resort and Spa, Sheraton Bali Kuta Resort and Le Méridien Bali Jimbaran – as well as W hotels in Singapore, Bangkok and Guangzhou.

Swiss Tourism opens regional office in Singapore

By Raini Hamdi

February 22, 2012

SWITZERLAND Tourism is opening a regional office in Singapore to tap more arrivals from South-east Asia, its fourth “booming” market after China, India and Russia.

It has shortlisted three candidates in Switzerland for the position of director for the Singapore office, who will oversee promotion and marketing of the destination to the travel trade and media in Singapore, Thailand, Indonesia and Malaysia.

The move is hastened by declining arrivals from its main markets such as Germany, Holland, Belgium, Italy and the UK as a result of the economic crisis. In contrast, the South-east Asia market grew 13 per cent to around 170,000 pax last year, said Switzerland Tourism executive vice president-Markets & Meetings, Urs Eberhard.

“The decline (in the European markets) is quite prominent, up to 10 per cent. Because of their larger numbers, it is substantial, even though there are markets like France which are not declining as much, say, three per cent, and those like Spain, Poland and the Nordic countries which are still registering positive growth,” said Eberhard. He was in Singapore with about 12 representatives from the various Swiss cantons to conduct a workshop attended by some 100 travel consultants. The road show continues in Bangkok, Jakarta and Kuala Lumpur this week.

Singapore is the largest South-east Asian market, accounting for some 35 per cent of total arrivals from the region, followed by Thailand (30 per cent). However, growth is fastest from Indonesia, up 46 per cent last year, Eberhard added.

Currently, Switzerland Tourism has a representative in Singapore and Malaysia in the form of an embassy staff who dedicates about 30 per cent of his time to tourism representation. This will be the first time a full-time dedicated director is installed to increase Switzerland’s share of the South-east Asian market, with a target of 12 per cent annual growth. The director will continue to be supported by the embassy representatives in Singapore and Malaysia. In Thailand and Indonesia, there would also eventually be similar support by an embassy staff, said Eberhard.

The Singapore regional office, to be located within the Swiss embassy, is expected to be operational by May or June.

Eberhard said Switzerland Tourism believed in working with the travel trade and would be supporting travel consultants in conducting consumer promotions, joint advertising and raising awareness by organising fam trips to Switzerland, among other initiatives.

Lucerne Tourism market manager Overseas, Mark Meier, said: “We have been pushing for Switzerland Tourism to have a dedicated person to promote Switzerland in South-east Asia. We can see that the figures are growing. For us, in our area, we saw 40 per cent growth from Indonesia and 20 per cent from Malaysia, for example.”

Vietnam Airlines gets majority share in Jetstar Pacific

By TTG Asia

February 22, 2012

VIETNAM-based Jetstar Pacific has undergone a change in ownership, with Vietnam Airlines (VNA) picking up a majority stake in the low-cost carrier, which previously belonged to the Vietnamese State Capital Investment Corporation.

Separately, the Qantas Group’s existing 27 per cent share in Jetstar Pacific has now increased to 30 per cent. VNA now owns 69.93 per cent. A new CEO and chairman are expected to be announced soon.

Chief executive of the Qantas Group, Alan Joyce, said: “We are confident this partnership between a low-cost carrier and a full-service airline in Vietnam can replicate the success of our Qantas and Jetstar strategy in Australia, and follows our recent partnership with Japan Airlines to form Jetstar Japan.”

Through the new partnership, Jetstar Pacific will receive an initial capital injection of A$25 million (US$26.6 million), including A$7.5 million from the Qantas Group. This will be directed towards fleet renewal, with the carrier’s current Boeing 737s replaced with new A320s from mid-2012. Jetstar Pacific’s fleet will grow to 15 A320s within the next few years.

The focus will be on serving both domestic and international routes.

Expanding in India

By Shekhar Niyogi

February 22, 2012

Foreign and local operators alike are eyeing India’s hospitality gold mine

The Westin Sohna Resort & Spa

Starwood Hotels & Resorts Worldwide, Inc

Who Starwood has 1,071 properties in 100 countries and territories across nine brands: St. Regis, The Luxury Collection, W Hotels, Westin, Le Méridien, Sheraton, Four Points by Sheraton, Aloft and Element.

In operation Starwood currently operates 33 hotels in India. The Luxury Collection is the largest Starwood brand in India, which is also the brand’s second-largest market after the US.

Under development There are over 20 hotels under development in India, all scheduled to open by 2015. In 2012, Starwood will open the ITC Grand Chola, Chennai, a Luxury Collection hotel; Westin Chennai; and two Aloft hotels. W Hotels (Mumbai, Goa, Delhi NCR) and St. Regis (Delhi NCR) will be introduced to the market in 2015 and 2016 respectively.

Investment Mostly management contracts. It has also franchised a part of its Luxury Collection to ITC Hotels such as ITC Maurya and ITC Grand Central.

Adapting to the market To meet the demand generated by the increasing number of Indian customers, Starwood opened its first Customer Contact Centre (CCC) for the market in Gurgaon earlier this year. This is Starwood’s ninth global CCC and its fourth in Asia-Pacific.

Average rate Rs8,000-20,000 (US$162-406) a night

Comment “Indian consumers continue to enjoy double-digit growth in per capita income, while the population of high net-worth individuals has grown over 80 per cent in the last five years…We have a significant opportunity to grow our luxury brands.” – Dilip Puri, managing director of India and regional vice president of South Asia

The Leela Palace Udaipur

The Leela Palaces, Hotels and Resorts

Who The Leela is a luxury hotel group with properties across India, including palace hotels in several cities. The chain exemplifies Indian hospitality and international standards of service excellence.

In operation The Leela has seven operating hotels throughout the country.

Under development Its eighth hotel is due to open in Chennai in March, while a ninth will open in Jaipur by year-end.

Investment Although the majority of its properties are built and owned, the group is now pursuing an asset-light strategy. Most of its hotels opening over the next few years will operate under management contracts.

Adapting to the market Indian business travellers need a more elaborate and efficient room service/in-room dining menu. For leisure, Indians take quicker and more frequent breaks; look for family and couple accommodation with more hotel activities; and have a lesser need for sightseeing. They sleep late, get up late, want to have late dinners and enjoy an overdose of service.

Average rate Rs15,000-25,000 a night

Comment “I am very bullish about the Indian hospitality industry as we have just scratched the surface. The government now understands the employment potential of this industry, and this is resulting in measures that will impact investment and make it easier for foreign nationals to visit India.” – Sanjoy Pasricha, vice president, sales and marketing

Sofitel Mumbai BKC

Accor

Who Accor is present in 90 countries with 4,200 hotels. Its broad portfolio of hotel brands include Sofitel, Pullman, MGallery, Novotel and Ibis, providing an extensive offer from luxury to budget.

In operation Accor has 10 hotels in India.

Under development Accor’s luxury brand debuted in India last year with the Sofitel Mumbai BKC. There are two more Sofitels committed for India. Accor has also reaffirmed plans to open around a dozen more hotels in India by the end of 2012 – double its current number – and remains on track to have 90 properties in the market by 2015.

Investment A mixture of owned and managed hotels.

Adapting to the market Guest services and F&B are designed with an accent on Indian travellers’ needs such as a suitable buffet spread, relevant TV channels and multilingual reception staff.

Average rate Rs7,000-18,000 a night

Comment “Accor is focused on India as a core growth market…While we are placing a significant emphasis on the mid- and economy sectors, we are also expanding in the upscale segments.” – Michael Issenberg, chairman and chief operating officer, Accor Asia-Pacific

CGH Earth’s Chittoor Kottaram

CGH Earth

Who CGH Earth develops and operates properties in India, with a strong focus on nature and the environment. A family-owned enterprise, CGH defines its properties as luxurious – both in comfort and experiences.

In operation CGH Earth has 12 resorts, heritage hotels and boutique hotels across southern India.

Under development There are plans for properties in the Andaman Islands, Puducherry and North Karnataka. CGH Earth’s properties will increasingly have fewer rooms, offering customised experiences for guests.

Investment All properties are owned and managed.

Adapting to the market Guests engage with the destination and the local communities. They are served fresh produce cooked in local flavours and styles. Core values such as sustainability and community involvement are promoted.

Average rate Rs10,000-12,000 a night (winter) Rs6,000-8,000 a night (summer)

Comment “Our customer is the ‘alert independent traveller’. He is on a voyage of discovery, and luxury is determined by the quality of his experience rather than ostentatious buildings. We expect growth to be much larger than our available capacity.” – Jose Dominic, managing director

This article was first published in TTG Asia, February 24 issue, on page 8. To read more, please view our digital edition or click here to subscribe.

Aonia offers free online space for listing packages

By Karen Yue

February 21, 2012

SINGAPORE-based conference organiser, Aonia, has taken its new website www.aoniamice.com online, flaunting a section that allows hotels to list their latest meeting package deals for free.

According to Aonia managing director, Daniel Chua, few other PCOs offer such a feature on their websites. He said the initiative was “more of an act of goodwill” towards hotels, and “provided value add” for current and potential clients who were increasingly turning to online sources for business events suppliers.

“No leads have resulted from the package listing (feature) yet, but there are good hits on the website,” he said. “That’s good because we want to draw more traffic to the website and grow awareness of Aonia.”

Chua said enquiries about the listed packages would need to go through Aonia “for now”, which would allow the company to connect with potential clients.

The new website also presents case studies of Aonia’s past events and is available in several languages: English, Simplified Chinese, Bahasa Indonesia, French, German, Russian and Spanish, a reflection of the company’s plans to reach out to multiple markets across the globe.

Chinese MICE agents maintain positive outlook

By Karen Yue

February 21, 2012

OUTBOUND Chinese MICE agents at AIME have dismissed reports of China’s slowing economic growth and are projecting good business this year, with increased frequency of events and attendance numbers expected.

Din Zhou, account director-corporate accounts department of China CYTS MICE (Guangdong) Service Co, observed two key areas of growth for his company.

“Large companies such as those dealing in direct selling, pharmaceuticals and insurance did well last year and are taking more attendees on incentive trips. We are seeing more than 2,000 pax per event now. There has also been a rise in small high-end incentive groups heading to longhaul destinations,” he said.

“However, with increased headcount, individual budgets for huge incentives have gone down. Clients are maintaining budgets for the key event components but are cutting back on F&B, transfers and tours, so we have to change the way we plan large incentive programmes. To keep costs down, we have to use big cities with many hotels located close to large venues and where many flights are available from China. These would be cities such as Bangkok, Singapore and those in Australia.”

Enquiries and bookings for overseas conferences were strong this year, said Shanghai VR Conference Organizer senior account manager, Amanda Xu.

Budgets and attendance numbers were not expected to increase though, she noted, saying: “The domestic market may still be strong for my clients, but profits may have to fill shortcomings in the European or American markets, so decision-makers are still cautious about how they spend on events this year.”

Good prospects in the outbound MICE segment, driven especially by local companies starting to adopt incentive practices, have also motivated Beijing’s Deluxe MICE Tour to expand its destination offerings for meetings and incentives. It is planning to set up a website showcasing five-star hotels and surrounding attractions and venues across the world.

However, the escalation of outbound MICE demand has brought on greater competition among China’s MICE agencies. Zhou said some rivals were slashing prices to win accounts.

“This is made worse by the Chinese clients’ calculative tendencies. They keep a sharp eye on prices and will compare many options to get the best deal,” he said.

Panorama reveals new thematic, budget hotel brands

By Mimi Hudoyo

February 21, 2012

PANORAMA Group’s hospitality arm, PHM Hospitality, has unveiled two new brands, Alaia and BnB, adding to its existing portfolio of The Haven and The 101 offerings.

PHM Hospitality managing director Kristian Kuntadi said: “Alaia, adopted from the name of the first surfboard in Hawaii, is our new three-star premium thematic hotel (brand).”

“The properties under this brand will be specially designed with different themes depending on location and target market, and will each offer 100-150 rooms.”

Due to launch by year-end, the inaugural Alaia property on Canggu Echo Beach, a well-known surfing area in Bali, will feature facilities catering to surfers’ needs, such as dedicated surfboard racks, and flexible service centre opening hours depending on the time of day when wave height is prime for surfing.

Meanwhile, BnB has been chosen as the group’s brand banner for budget properties, with the inaugural BnB hotel to open in Jakarta by year-end.

“The concept is similar to the ones already in the market, but being a new player, we need to provide more than others,” said Kuntadi.

“Some of the features will be bigger rooms (18m2), WiFi access in the room, a minimum of two towels instead of one, and better standard of amenities than the average hotels of this class,” he added.

PHM Hospitality currently manages The Haven Seminyak and The 101 Legian, both in Bali, with another six properties under construction in Jakarta, Bogor, Jogjakarta and Bali.

Panorama Group CEO Budi Tirtawisata said PHM was aiming to develop ten new hotels this year. The group is expected to manage 15 hotels by 2013, and 30 by 2015.

– Read more about Panorama Group’s international expansion in TTG Asia, February 24 issue

Garuda puffs up its expansion strategy

By TTG Asia

February 21, 2012

GARUDA Indonesia shareholders approved earlier this month a motion to buy 97 new aircraft by 2016, a huge jump over the 36 planes it was originally planning to add to its fleet (TTG Asia e-Daily, January 13, 2011).

Under the beefed-up expansion programme, Garuda will purchase 20 Boeing B737-800NGs, 24 Airbus A330-200s, 25 five narrow-bodied aircraft for Garuda Citilink, and 18 sub-100 seat aircraft. An original order for 10 Boeing B777-300ERs for longhaul operations will remain or switch to other similar aircraft.

Garuda vice president corporate communications Pujobroto said: “Garuda earlier announced through the Quantum Leap Programme that it would operate 154 aircraft by 2015.”

“With the new fleet expansion programme, Garuda will operate 194 aircraft comprising of 24 A330s, nine B777s, 85 B737-800NGs, 50 A320s for Citilink, 25 Sub-100s and three freighters by 2015.”

According to Pujobroto, the enhanced fleet expansion was in anticipation of significant increases in airline passengers, both domestically and internationally.

“It is also part of Garuda’s efforts to boost efficiency, as the new aircraft are more fuel-efficient and environment friendly,” he explained. “Their maintenance cost is also lower.”

AIME 2012 kicks off with new smartphone app

By Karen Yue

February 21, 2012

AIME 2012, which starts today at the Melbourne Convention and Exhibition Centre (MCEC), will be the first-ever show to feature the venue’s new smartphone application, MConnect.

Said to be the first smartphone app offered by a convention venue in Australia, the tool provides information on events and facilities at MCEC, as well as the various attractions, dining establishments and entertainment options in Melbourne.

The app also features a built-in navigational mechanism that is able to guide visitors around the centre as well as its surrounding areas.

Event organisers can even publish programmes, and announcements such as lost-and-found notices and seminar alerts through the app, allowing direct access to their delegates.

MConnect can be downloaded for free via mconnect.mcec.au or www.mcec.com.au.

AIME, which is celebrating its 20th anniversary, has reported a stronger showing this year, with over 500 hosted buyers and 779 exhibitors, and 3,736 pre-registered visitors.

The two-day event is scheduled to make a return to Melbourne from March 19-20 next year.