MAJOR Japanese outbound travel group H.I.S. Co. is aggressively building its inbound business, having recently acquired key land operator Japan Holiday Travel and created an inbound division.

H.I.S. inbound division-headquarters, team leader, Shunichiro Shimmyo, told TTG Asia e-Daily the company had just completed its acquisition of Japan Holiday Travel in July, with full details to be announced in its financial statement next week.

“Japan Holiday Travel is one of the top agencies in Japan and it mainly handles the Chinese market,” he said, adding that it brings some 100,000 Chinese travellers into Japan a year. Japan Holiday Travel will continue to oversee the China market as a H.I.S. subsidiary.

As for its inbound division, set up last December, Shimmyo explained that H.I.S. was now working on remodelling its 118 overseas retail outlets, going beyond catering to Japanese travelling abroad, and growing local demand for Japan. They would also begin to conduct B2B sales.

Shimmyo shared that in H.I.S. inbound’s first year of operation, it had managed to attract 10,000 tourists from Asia, where most of its business originates. He estimates that the figure will swell to 30,000 next year, once demand for Japan recovers after the sakura season.

He added that he had recently returned from managing the Thai branch for five years, where he was tasked with developing the local market for Japan inbound.

“Thailand is one of our main focuses,” said Shimmyo, pointing out that there was an absence of a huge outbound travel company there, unlike in Singapore and South Korea, for example, where there are strong competitors. Indonesia and Malaysia are also on its radar.

Meanwhile, H.I.S. Experience Japan, a subsidiary focusing on experiential holidays for the Europe and US markets, also ceased operations last year, with customers now absorbed into H.I.S.’s inbound division.

AIDADIVA, one of eight ships operated by AIDA Cruises, made its inaugural call to Singapore on Wednesday, with approximately 2,000 passengers on board.

AIDAdiva docked in Singapore for eight hours before sailing on to Ho Chi Minh City and Laem Chabang in Chonburi province, Thailand. The ship is scheduled for a turnaround in Singapore on December 5, and will make a total of nine return calls till March next year.

About 95 per cent of the passengers on AIDAdiva are from Germany, with the remainder coming from other German-speaking markets such as Austria and Switzerland. The passengers are around 54 years old on average.

The 2,500-pax AIDAdiva is the third AIDA ship to call at Singapore in the last three years, and the largest by far. AIDA cruises deployed the 1,300-pax AIDAaura and 1,200-pax AIDAcara in Asian waters in 2010/2011 and 2009/2010, respectively.

Christina Siaw, CEO of Singapore Cruise Centre, welcomed the capacity hike by AIDA to the region, but emphasised that “there was a need to create awareness among travel professionals as well as consumers about the cruise ships and brands that call into Singapore”.

Meanwhile, AIDA signed a memorandum of understanding with Japan’s Mitsubishi Heavy Industries in August for the construction of two 3,250-pax ships.

The ships are scheduled for delivery in March 2015 and March 2016, but there are no indications at press time where they will be mobilised.

FEELING the heat from fierce Asian competition for MICE business, Japan is taking this challenge seriously, with plans to renew a focus on the market next year.

Explaining that a government review resulted in the elimination of a MICE-specific budget for its 2011 fiscal year, Japan Tourism Agency (JTA) director, international tourism promotion division, Shuichi Kameyama, said the country was not able to compete effectively for MICE in the past year, as it could only afford to attend a few tradeshows.

Kameyama added that between March and June, 60 international conferences were cancelled as a result of the double disasters, even though some were scheduled to be held as far ahead as 2013.

“I was quite shocked. Why cancel meetings to be held in two years’ time? We need to convince them that Japan is okay,” he said.

Kameyama said JTA would lobby the government for a dedicated budget of around 300 million yen (US$3.9 million) for 2012, which it would use to host key players, develop a market strategy and build an ecosystem that supports MICE, in addition to participating in international trade fairs.

Japan National Tourism Organization executive director, marketing and promotion department, Mamoru Kobori, added: “If this budget is gone, our international competitiveness will weaken.”

However, Kobori was optimistic that 2012 would be a positive year for MICE, pointing out that Japan would host three huge important meetings: the Annual Meetings of the International Monetary Fund and the World Bank Group, which would see 2,000 participants in Tokyo; Sibos, a 8,000-pax meeting by SWIFT in Osaka; and the World Travel & Tourism Council Global Summit attended by over 1,000 delegates, to be held in both Tokyo and Sendai.

“If all the meetings are successful, we’ll be able to announce that there is no problem of meeting in Japan…It’s a symbolic series of events,” he said.

THE THAILAND Convention and Exhibition Bureau (TCEB) is working on a three-stage strategy to battle the impact from the flood crisis, which is expected to cost the country’s MICE industry up to 3.32 billion baht (US106.5 million) in revenue and 250,860 foreign visitors in 2012.

TCEB president Akapol Sorasuchart said the strategy would last from now till March 2012, and would involve immediate measures to handle MICE visitors during the ongoing crisis.

Between this month and next, TCEB will be working to maintain market confidence, and will pump in financial subsidies for events that have been postponed or relocated, including 25 international trade fairs scheduled to take place between November this year and June next year.

A rehabilitation initiative has been planned for January to March next year. This will include tax incentives for companies organising events during the period, updates on the situation in Thailand through marketing and publicity activities, and financial support to stimulate domestic meetings and seminars and international trade shows.

Akapol said the strategy would hopefully enable TCEB to maintain its initial targets for next year –750,000 foreign MICE visitors and 60.12 billion baht in revenue – including numbers from the Rotary International Convention scheduled to take place in Bangkok next May, with about 30,000 delegates from 20 countries in attendance.

INDONESIA’s Sriwijaya Air and Bank Negara Indonesia (BNI) have introduced the Sriwijaya BNI Travelling card, a virtual credit card designed to replace the cash deposit that the airline’s travel trade partners usually have to make.

Under the terms of an MoU signed between Sriwijaya Air, the Association of Indonesian Airlines Ticketing Agencies (ASTINDO) and the Association of the Indonesia Tours and Travel Agencies (ASITA) Jakarta chapter, ASTINDO and ASITA members will be able to use the virtual credit card to issue the airline’s tickets.

The credit limit per travel firm is decided by both BNI and Sriwijaya Air based on the travel consultant’s sales volume, while the credit is protected by Raya Insurance—which will cover payment in case of default by the airline.

ASTINDO deputy chairman Rudiana said: “This is the breakthrough our members have been waiting for. Most airlines in Indonesia use cash top up system of ticket deposits payable to the airline’s individual bank. The problem with this is that when the airline defaults the deposit is gone, just like in the case of Adam Air and Mandala Air.

“With the credit card system, travel consultants need to pay 1.5 per cent of the ticket value for merchant fee and insurance, but we don’t need cash top up for deposits and get credit up to 45 days. In case the airline stops operations, the insurance will pay back all tickets not flown in full.”

ASITA Jakarta chairman Herna Danuningrat said: “Sriwijaya Air has led the way, we hope that other Indonesia National Air Carrier Association members will follow suit.”

STARWOOD Asia Pacific Hotels & Resorts has reported that MICE recovery initiatives implemented in Japan since April have netted more than US$6 million in meetings-related sales for its 15 properties in the country.

Through the collective efforts of sales associates in 25 Starwood Sales Organization Offices (SSOs), hotel occupancy at the group’s properties in Japan quickly picked up again, after falling to the lowest ever as international arrivals plunged by 50.3 per cent following the earthquake and tsunami in March.

“MICE is an important segment for Starwood’s Japan properties. Post crisis, there were significant cancellations from MICE groups across our 15 hotels in Japan,” said Starwood’s chairman and president, Asia Pacific, Miguel Ko.

“Since the disaster, our SSOs all over the world have stepped up efforts to inform guests that it is now time to consider travel to Japan. We have also responded to the feedback from key clients by implementing their suggestions to help in the recovery.”

As part of a business recovery campaign, Starwood organised fam trips for more than 20 MICE buyers from China and South-east Asia after the disaster, and rolled out MICE–specific promotions at all its Japan properties.

In August, 120 Japan-based corporate clients were invited to the Sheraton Grande Tokyo Bay to discuss further opportunities, and were provided with a showcase of Starwood’s Japan portfolio.

Other recovery initiatives for both the leisure and MICE segments include a Starwood Expo in Tokyo and Osaka that netted more than 6,000 roomnights, and A Japan Recovery Microsite that contributed 5,000 roomnights.

Starwood’s portfolio in Japan consists of 15 properties in Tokyo, Osaka, Yokohama, Sendai, Sapporo, Kobe, Nagoya, Hiroshima and Awaji Island under the Westin, Sheraton and St. Regis brands.

INDONESIA is intent on growing its cruise industry, with a chain of infrastructural and policy developments, particularly in Benoa on Bali, scheduled to take shape over the next three years.

Captain Ali Sodikin, terminal manager, Port of Benoa, said dredging work to turn Benoa into a turnaround port had already begun, with the second phase set to start in 2012.

“Currently, larger cruise ships have to dock three miles out to sea,” he said. “By 2013, this is set to change, and (bigger) ships will be able to sail up alongside the terminal.”

According to Sodikin, Benoa was in a strategic location as “we are the halfway point for cruise ships sailing between Singapore and Australia”. “We also have the advantage of being close to an international airport (Ngurah Rai International Airport), making fly-cruises a real possibility,” he said.

Sodikin added that several cruise ships carrying an average of 2,000 pax were expected to make a total of 34 calls to Benoa this year. Some 38 calls are predicted for 2012.

Speaking at the recently concluded Cruise Shipping Asia 2011, Sapta Nirwandar, Indonesia’s vice minister of culture and tourism, said a target of 141,000 international cruise passengers had been set for 2012. Just over 94,000 foreign cruise passengers called on Indonesian ports last year.

Meanwhile, plans are underway to ensure that Indonesian ports comply with the International Ship and Port Facility Security Code, which prescribes responsibilities to governments, shipping companies, as well as onboard and port facility personnel to detect and take preventive measures against threats to security.

JAPAN, whose inbound tourism took a hit from the March disasters, is intending to launch several new initiatives to bring recovery to visitor numbers, once a bigger promotional budget is approved by year-end.

At the opening of Visit Japan Travel Mart 2011, Japan Tourism Agency (JTA), international tourism promotion division, director, Shuichi Kameyama, said the body was requesting for a budget of 6.37 billion yen (US$82 million) for its 2012 fiscal year, up from 6.06 billion yen previously.

This amount will fund new projects such as Fly to Japan, which will see 10,000 overseas visitors obtaining free air tickets, relying on word of mouth to project the image of Japan as a safe tourist destination. JTA also plans to host 200 youths from China – its second-most important source market – in conjunction with the country’s 40th anniversary of normalisation of diplomatic ties with Beijing.

The bulk of the budget will then go to marketing promotions as part of the ongoing Visit Japan campaign as well as MICE-specific support.

Said Kameyama: “We want to expand our target markets from the current 15, and are hoping to add Indonesia, Vietnam, the Philippines, Brazil, Mexico, Italy, Spain, Saudi Arabia and the UAE. Indonesia and Vietnam are the most important among them because of their speed of economic development and the possible increase in airlines (flying between the countries) because of open skies agreements.”

He added that while initial efforts in those countries would be “small steps” such as hosting of fam trips, money would also be spent on advertising in the future, depending on the rate of growth.

According to latest figures, Japan’s number of foreign visitors from January to October was 5,095,400, still 30 per cent down compared to the same period last year. While some markets like Taiwan and Hong Kong showed positive growth over last October, Japan’s top market – South Korea – continued to post sharp negative growth.

In order to further restore demand for inbound travel, JTA launched a Japan Big Welcome Campaign last week. Running until March 31, 2012, countrywide discounts are offered in partnership with retail and F&B outlets, hotels and transport operators.

SYDNEY has clinched a 2,000-pax Indonesian incentive group that was also aggressively wooed by the Australian states of Victoria and Queensland.

The group (name withheld by TTG Asia e-Daily as corporate clearance has not been attained) has been handled by Esa Tour Indonesia for the past 17 years. A company dealing with a household product, the annual incentive rewards its direct sellers in top, middle and lower tiers who have achieved sales targets.

The group will visit Sydney in March 2012. Last year, it went to Beijing.

The growth in the size of the group is an indication of the effectiveness of incentive travel as a business tool for Indonesians. “When we first handled this incentive, there were only 90 people. Last year in Beijing we had 2,150 winners,” said Esa Tour Indonesia’s business development director, Ida Robinson.

Ida said Sydney won the race in the end as it had enough direct flights to accommodate the large group and it gave a commitment to “do its best” to facilitate visas for the winners.

The number of Asian incentives has grown 48 per cent per annum in the past five years ending June 2011, according to Business Events Sydney (BESydney).

BESydney’s acting CEO, Lyn Lewis-Smith, said in the last four months, Sydney won 15 new incentive events and of these, six were repeats, including AIA Thailand in 2011 and 2012, LG Korea (chemicals) in multiple trips between 2003 and 2009, Fubon Life Insurance in 2006, 2007 and 2011, Amway China in 2005 and 2011 and Amway Malaysia in 2010 and 2012.

– Full report in the next issue of TTGmice

AS part of South Korea’s broader tourism strategy, policymakers there are lining up a series of initiatives to bolster the development of the country’s domestic cruise industry.

Under the proposed measures, the government will allow local cruise ship operators to open on-board casinos to foreigners, introduce a tonnage tax system for cruise operators—similar to what is already in existence for cargo ships, as well as provide education programmes to train service staff and other maritime-related workers.

Piers will be constructed exclusively for cruise ships, port charges will be lowered and other supporting infrastructure will be built to lure more foreign cruise liners to South Korea.

In addition, the government is hoping to nurture a first homegrown cruise operator, as demand for cruise travel is projected to rise, particularly from neighbouring China.

Speaking to TTG Asia e-Daily at the recently concluded Cruise Shipping Asia 2011, Wook-Kyun Kim, vice chairman and co-founder, AJU Incentive Tours (Korea) said: “Without a doubt, the cruise market in North-east Asia is set to benefit from the positive developments in South Korea.”

There are also plans in motion to grant visa waivers for foreign visitors who arrive by cruise ship.

“The Korean Ministry of Land and Marine transport has debated over this issue (visa waiver) for awhile, and this, alongside the various port developments, will certainly help to put Korea on the cruise map,” said Jong Woo Lim, manager-strategic tourism product team, Korea Tourism Organisation.

An international cruise terminal currently being built at Yeosu (TTG Asia e-Daily, November 17) is due to open in 2012, while Busan’s international cruise terminal, situated in a revitalised lifestyle and leisure zone and scheduled for completion in 2014, is expected to boost South Korea’s status as a cruise hub and destination.

Presently, only two ports in the country, Jeju and Busan, are able to accommodate large cruise ships.