NEXT year’s annual meeting, which will take place April 20-22 at Putrajaya Marriott, Malaysia, will address the industry’s challenge of attracting and retaining young talent.

Students from Malaysia’s biggest tourism and hospitality school and second-generation tourism practitioners have been asked to impart ideas on what the industry should do differently.

INDONESIA and China are among countries that are stepping up marketing efforts to woo Indian travellers, citing an increase in roadshows, relevant trade mart participation and fam trips.

Indonesia is eyeing 160,000 visitors from India, an increase of 10-15 per cent over 2010.

Ministry of Culture and Tourism director general of marketing Sapta Nirwandar said more sales missions, fam trips for media and tour operators, and promotional campaigns were being rolled out this year. Indonesia has also attended five travel marts in India this year, up from one previously.

He explained that cultural and religious similarities between the two countries, along with Indonesia’s value-for-money hotels, gave it an edge over its regional neighbours. Bali, he added, was gaining popularity with Indians for weddings.

Several Chinese destinations also told the Daily that they were starting to eye the Indian outbound market seriously, encouraged by a rise in interest and the need to diversify source markets.

Henan Tourism Group deputy general manager, Lion Liang, said: “We received 6,000 Indians in 2010…of which 80 per cent were MICE. Since the Indian MICE segment is already performing well, we want to grow the leisure segment, which we have found to contribute better margins.”

– Read more in TTG-PTM Official Daily – Day 3 issue

LE PASSAGE to India (LPTI), which is half-owned by TUI, is on the hunt to acquire agents in India in a bid to grow regionally.

Managing director Arjun Sharma said both partners believed in India and felt that an acquisition strategy would help the company grow faster than growing organically.

Sharma said they would be on the lookout in the next six months for “a medium-sized agency with a turnover of US$5-US$6 million and producing some 10,000 tourists into India”.

Agencies that fit the bill would be ones that could fill existing gaps, both in terms of geographical markets and products. Priorities are markets such as North America, China and Australia, and products such as adventure and pilgrimage tours.

LPTI would retain the company’s management and branding, and would seek to buy up to 79 per cent of the agency, thereby ensuring that its “entrepreneurial spirit” remained after the buy-out, while it provided strengths such as central purchasing and operational expertise, he said.

“This is why we’re also looking for the right owner, who still wants to grow the company, not someone who wants to retire.”

But Sharma said expectations of sellers were currently high, as they wanted four to five times the earnings. “While the market looks good, there is fragility in the long-term and these expectations must be managed.”

“A price tag of US$5-US$10 million would probably be more realistic for the mid-sized agency and, once again, it’s not for the sake of acquiring, it has to fit,” he added.

LPTI operates 13 brands covering markets such as luxury and MICE. Asked if it was inspired by Cox & Kings India’s takeover of Holidaybreak UK (TTG Asia e-Daily, July 29), which is expected to be completed by the end of this month, Sharma said: “They are showing us the way.”

INDIA’S tourism minister Subodh Kant Sahai announced yesterday his ministry would organise an annual Global Travel and Tourism Mart starting 2012.

Hyderabad or New Delhi will host the inaugural event.

Delegates interviewed by the Daily on Wednesday had said that one unifying show was needed.

Meanwhile, the reported partnership between Messe Berlin and Goa International Travel Mart (GITM) will see Messe Berlin conduct seminars on topics such as responsible travel and gay tourism.

ITB Asia and GITM are also back to back, allowing longhaul buyers to see Goa.

HONG KONG’S blue-eyed boy last year, the India market, is showing signs of weakening for the SAR, dropping 5.1 per cent in the first six months over the same period last year, after a spectacular rise of 44.8 per cent in 2010 due to new direct flights.

Some Indian outbound travel agents are quick to blame Hong Kong’s high room rates, along with a more aggressive campaign by Macau, for the dip.

“Bookings to Hong Kong have dropped 10-15 per cent in the first six months, as my clients have been unwilling to pay the rates demanded by hotels,” said Ashwani Gupta, managing partner, Dove Travels.

The average room rate grew 17.1 per cent to HK$1,222 (US$157) in the first six months, half a per cent higher than the peak of HK$1,216 in 2008.

Shiban Kotru, president of Uniglobe Travel, warned the slump in Indian arrivals to Hong Kong would continue if room rates rose further and if a shortage of room supply was not addressed soon. “Compared to other cities in Asia such as Bangkok and Kuala Lumpur, hotel rates in Hong Kong are prohibitively expensive.

“Indians can, for instance, stay in Bangkok’s five-star properties at prices charged by three- and four-star hotels in Hong Kong,” he said, adding that his clients now preferred Kuala Lumpur and Bali, where room rates were still within “acceptable limits.”

– Read more in TTG-PTM Official Daily – Day 3 issue

THE US and Eurozone debt crisis is starting to bite, with Asian inbound operators saying there is cause for concern.

Different agents are reporting dips from various European markets, depending on how their overseas principals are performing and which segments of the market they are in. In general, however, a slack in the summer season, which is nearly ending, has not gone unnoticed, while winter numbers are just not there, according to sellers.

World Express Malaysia, for instance, saw a dip of 10-12 per cent this summer from Europe overall. “A bit of decrease here and there from each overseas agent becomes one huge thing,” pointed out executive director Cherry Lee.

Go India Journeys is seeing group sizes shrinking and accommodation being downsized to three- or four-star hotels. “There are some worrying signs,” said COO, Amit Prasad. “Margins are under attack. This is why we’re lobbying to prevent the implementation of new hotel taxes in India, which may cause India to be outpriced.”

For many, Spain is one market that is in the doldrums. Those who had the business of Nobeltours, for example, now have to make up for the numbers they used to get from the Spanish operator.

Since news got out that Nobeltours’ Chinese partner had refused to handle its passengers because of its accumulated debts (TTG Asia e-Daily, August 24), a chain reaction followed from other partners. Nobeltours now has to put its house in order before it can resume tours.

But for its Asian partners such as Asian Trails, that has meant 1,000 pax less in the books, to Vietnam and Myanmar mainly.

– Read more in TTG-PTM Official Daily – Day 3 issue