WITH the ringgit strengthening against the US dollar, outbound travel from Malaysia is expected to pick up, especially to destinations tied to the greenback (See related story).

The ringgit has been steadily appreciating against the greenback and is currently pegged at RM2.99 to the dollar.

“As the US dollar is used by many suppliers, including cruises to the Baltic and Mediterranean, this bodes well for us, as our products are very attractively priced,” said Jebsen Travel & Tours Services managing director Lim Chee Tong, who is expecting a 20 per cent rise in cruise bookings.

“America has not been so popular over the years because of the strict visa restrictions, but due to changes, plus the currency depreciation and also the Middle East unrest, we will probably see a rise of travel here,” said Apple Vacations & Conventions managing director Koh Yock Heng.

“Europe continues to be hugely popular due to the lower euro, which is now around RM4.30.”

Malaysian Harmony Tour and Travel chief executive officer Cooper Huang is certain that there would be a gradual impact. “The growth in our travel segment has been rising progressively due to the falling dollar.”

INBOUND agents in Malaysia are anticipating that the strengthening of the ringgit against the US dollar will make the destination more expensive (See related story).

The ringgit reached a 13-year high of 2.99 against the dollar on Monday, and is expected to continue to rally higher in the short-term.

Yap Sook Ling, managing director of Asian Overland Services Tours & Travel, believes that the pinch would be felt in the next contracting season in November. This is the period when the company would also have to add a buffer for exchange rate fluctuations, as well as an increase in the cost of living, which will result in ground arrangements becoming more expensive.

She anticipates that package prices would increase by 15 to 20 per cent for the next season. She said: “That’s a lot. To price sensitive markets such as longhaul markets, outbound agents’ main concern will be the higher prices. It will make the destination become more expensive, compared to regional destinations such as Thailand, Bali and Vietnam.”

Red Apple Travel & Tours is a major player in the Indian inbound market. Managing director, Arokia Das Anthony, said: “Our margins are already low, as India inbound is a volume market. We have to bite the bullet for whatever has been quoted and guaranteed.

“For the next contracting season, we will work on a different rate of exchange, bearing in mind that we will also have to ensure the destination remains competitive.”

To minimise risk of losses due to currency fluctuations, Tina Travel & Agencies managing director, Adam Kamal, has included a clause in the confidential tariff given to partner agents, where rates are subjected to change upon confirmation of bookings.

MORE companies in Indonesia are looking to organise MICE events at home, as awareness of domestic MICE facilities is growing.

Bank Danamon Indonesia American Express (Amex) Corporate Cards head, Silvy Widyaningrum, said: “We have seen growing corporate card members organising MICE events in Indonesia (rather) than overseas in the last couple of years. In 2010, the use of Amex Corporate Cards for MICE events increased by 60 per cent.”

In her evaluation of the Indonesia MICE and Corporate Travel Mart (IMCTM), which Amex Bank Danamon has been co-organising with RajaMICE.com for the past three years, Widyaningrum said that the show has increased the awareness of MICE facilities available in the country.

IMCTM brings Indonesian MICE suppliers and top Amex Corporate Card national and multi-national members in Indonesia under one roof. The annual show is supported by the Ministry of Culture and Tourism.

The ministry’s MICE director, Nia Niscaya, said: “With the buyers comprising Amex members, the result is easy to monitor. Last year’s event produced some 50 billion rupiah (US$5.6 million) in corporate and incentive business.

“However, we need to expand the show. Now that the show is entering the fourth year, we will also invite regional and international buyers, those we met at international MICE shows and road shows, who have an interest in Indonesia.”

This year’s IMCTM will take place in Manado, North Sulawesi from May 17 to 22.

RajaMICE.com CEO, Panca Sarungu, said 100 MICE suppliers will be selling their products to 130 buyers during the table-top business sessions.

Apart from the mart, delegates will be participating in a familiarisation trip of Manado and the surrounding areas.

RESORTS World Genting is on track to cater to the Indian market, with the availability of more rooms after renovations were completed at many hotels.

The market experienced room shortage during last year’s summer peak travel season.

Red Apple Travel & Tours managing director, Arokia Das Anthony, said it was easy to confirm bookings for the Indian summer season, which is from mid-April until the first week of July.

He said: “With room availability at Resorts World Genting, it makes it easier for us to promote the destination to meeting and incentive groups from India. The Indian MICE movements usually take place from July onwards.”

Anthony has already confirmed six meeting and incentive groups from India for July. Each group will have over 100 people.

Last year, the resort had about 5,000 guests during this period. For this year, Red Apple forecasts a 30 per cent increase in FITs and groups.

BANGKOK-based Asian Trails has issued a press release saying that the conflict along the Thailand-Cambodia border has not affected its itineraries so far.

In a joint statement, Asian Trails Thailand managing director Roger Haumueller and Asian Trails Cambodia managing director Jacques Guichadut said: “We would like to point out that the itineraries of Asian Trails in Thailand and in Cambodia do not pass by, (are) not even nearby, these fighting areas. No amendments to any of our tours and itineraries are necessary. Please note that the Angkor temples in Cambodia are located some 230 kilometres south-west of the disputed area.”

Major news outlets have reported that the conflict along the border of the two countries has resulted in at least 12 dead and thousands being evacuated.

The tension concerns the Ta Krabei and Ta Muan temples, about 47km west of the O’Smach Border Pass between Thailand and Cambodia, and also about 250km west of the disputed Khao Prah Viharn/Preah Vihear Temple.

According to Asian Trails, scheduled flights between Thailand and Cambodia “operate as normal and the border crossing at Aranyaprathet/Poipet is also open without any restrictions”.

SHANGRI-LA has secured several tax concessions from the Sri Lankan government to build a multi-purpose leisure complex and resorts in the country.

The Asian hotel chain is planning two developments, in Colombo and the southern city of Hambantota. It has set up two subsidiary companies to handle the projects.

According to a gazette notification issued by Economic Development Minister Basil Rajapaksa, who handles the tourism portfolio, Shangri-La Hotels Lanka is building an “upmarket hotel, high-quality residencies and a high-end shopping mall” on four hectares of land in Colombo, near Sri Lanka’s army headquarters.

This project will enjoy a 10-year corporate tax holiday, a 10-year exemption on dividend income and a five-year exemption on income tax for a maximum of 20 expatriate staff, among others.

The Colombo project involves an estimated investment of US$283 million.

The notification issued by the minister, under provisions available for tax concessions in strategic development projects, provides similar concessions to Shangri-La Investments Lanka, which is building a luxury hotel and residential villas in Hambantota, totalling an estimated US$109 million.

This company has already spent around US$3.5 million to purchase the land there.

The tax breaks, according to the minister, who is the younger brother of President Mahinda Rajapaksa, have been provided, as “the projects are of national interest and likely to (bring) economic and social benefits to the country, and also change the landscape of the country”.

PATA chairman Hiran Cooray, who is also chairman of Sri Lankan Jetwing Hotels, welcomed the special concessions for Shangri-La, saying such high-class hotels would elevate the hotel industry there.

“I have stayed in Shangri-La hotels overseas, and the service is fantastic. We can learn from them,” he said.

IHG’S Holiday Inn Express is set to make its presence felt in Indonesia soon, with the construction of the proposed 160-room Bali Legian hotel starting middle of this year.

Holiday Inn Express Bali Legian will be located along Jalan Imam Bonjol and is projected to open by early 2013.

IHG signed the management agreement with PT Wismatama Indah Makmur, which is owned by the Lukminto family.

Jan Smits, chief executive of IHG Asia Australasia, said: “Bali is Indonesia’s most popular holiday destination and is a great location for us to introduce the brand to the country. We continue to look for the right opportunities to expand Holiday Inn Express’ presence in other key Indonesian cities.”

MALAYSIA AIRLINES (MAS) is allotting a minimum of 150,000 seats for Indonesia during its one-month Global Deal, Dream Gateway promotion.

Launched in Jakarta yesterday, an average reduction of up to 65 per cent off the normal price for economy and business class seats is on offer.

The lowest price for Indonesia is the Medan-Kuala Lumpur route, which starts from US$2 for an economy class one-way (fuel surcharge, insurance and airport tax not included), and the highest is US$955 from six Indonesian gateways to Europe.

The promotion is valid for sales between April 25 and May 24, with a travel period until March 31, 2012.

MAS executive vice president sales & marketing, Dato’ Bernard Francis, said: “The mega sale is in line with our new products.

“We have done a lot of branding exercises. We have received new aircraft and will have more,” he said. “We are inviting customers to experience the value of our services.”

The promotion is also part of the airline’s effort to stimulate the “slight dampening” traffic due to the high fuel price and Japan disaster.

When asked why MAS picked Jakarta over Kuala Lumpur for its promo launch, Francis said: “Indonesia is a very important market for MAS. Business from Indonesia has grown by 15 per cent annually in the last three years.”

MAS is expecting a revenue of US$10 million from the promotion. The airline has 89 flights between Malaysia and Indonesia per week, with a country average load factor of 75 per cent, according to MAS area manager, Indonesia, Roslan Ismail.

MAS regional senior vice president ASEAN region, Muzammil Mohamad, said: “The mega sale is a good opportunity to fly beyond Kuala Lumpur with MAS, as we have convenient connections.”

INBOUND agents from India are seeing a growth in demand for rural tourism, especially with FIT travellers from Western societies.

Sita business head Europe, Philip Thomas, said the company has seen a 25 per cent year-on-year growth last year over 2009. “This year, demand is also strong, especially from France, Italy and UK,” he said.

He said rural tourism is a small but fast-growing market. “Many are well-off and well-travelled. They are mentally prepared for the experience. They know the facilities are not as good as hotels, but they seek not so much comfort, but experiences that will make a memorable holiday,” he said.

The company sells farm-stay packages in Punjab and homestays around India. He said some combine a rural stay with community volunteer work, which is also growing in popularity.

Le Passage To India executive director, Khalid Khan, said his company has seen a 20 per cent growth in rural tourism last year, especially from France and Germany. He said many of his foreign clients are those who are already involved in farming and agriculture and they travel to India to study farming practices there.

Red Lantern Journeys is a US outbound agent who sells tours to India. CEO Ambrose Bittner IV said that rural homestays in Kerala are popular with FIT clients between the ages of 40 and 70. “They provide quite good service with families taking good care of the travellers,” he said.

He added that such stays are usually for up to two days and are part of an extension of a longer programme. “Some rural experiences are out of the way. If a traveller spends less than two weeks in India, it is really not worth it. The biggest challenge is logistics and fitting the rural programme into the bigger itinerary.”

AFTER an encouraging first quarter, Diethelm Events is anticipating a “hazy” outlook for the next six months, according to executive manager David Barrett.

He cited the expected upcoming Thai election and customer concerns over Japan as factors.

“The outlook for the fourth quarter will be subject to the outcome of the election. Hopefully, if we can have a clear election where people stand by the results, we can continue to build business,” Barrett said.

The DMC, one of Thailand’s largest, regained customer confidence in the country from November last year, following political turbulence between March and May. It noted, however, that misleading media coverage of recent rainstorms in the south had dampened prospects to the destination.

Despite the volatile outlook, the DMC is continuing its efforts in promoting Thailand. It will launch a new off-property Thai cultural evening at a Bangkok city-centre temple at IMEX in Frankfurt next month.

Its all-inclusive promotion to corporate meeting and incentive travel planners in South Africa and Russia, launched last year, will also be expanded from Khao Lak to include Phuket, Koh Samui and Bangkok. The package offers four days/three nights of accommodation, all meals and transfers and an excursion for a group of 50 to 150 delegates.

By Sirima Eamtako