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China incentives remain healthy
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Karen Yue, Bangkok (2008-10-10)
DEMAND for meeting and incentive travel from Chinese companies remains healthy, according to China buyers at this year's IT&CMA and CTW, held in Bangkok from October 7 to 9.
Shanghai CS innovation Consulting director, Mr Joseph Sze, said: "We saw a 30 per cent growth in outbound MICE (meetings, incentives, conventions and exhibitions) volume over the past three years."
For Chinese companies, incentive travel is often held as part of an annual general meeting or seminar for staff.
Agents who used to handle only leisure outbound business are now trying to get a piece of the outbound MICE pie.
Shanghai Eastern Air International Travel & Transport vice-manager for outbound, Mr Bruno Wu, said: "Our agency has traditionally played the role of a travel agency handling leisure groups and FIT, but market demand is pushing us to grow MICE-handling capabilities.
"Since last year, we have attended MICE trade shows in Australia and Japan to make more business contacts. We also intend to play an advisory role as travel managers for our corporate clients."
MICE suppliers in Asia, which have been courting China-based companies, have focused only on Beijing and Shanghai, and not on the rest of China, according to China Travel Service Luoyang Co, a major outbound travel agency serving corporate clients in central China.
The agency's vice-general manager, Mr Lee Shaopu, said: "Henan alone has 98 million people and a strong presence of MNCs and heavyweight local companies. Imagine if just one per cent of this population are ready and willing to pay for incentive travel, how many people would that be?"
Mr Shaopu added that major MNCs with offices in China have the budget for incentives and some could be very generous.
Chinese agents who attended IT&CMA for the first time came with the intention to learn and be exposed to international MICE practices, and to make contact with reliable MICE suppliers and ground operators.
As China does not have a wide selection of beach destinations, they are especially keen to seek out beach resorts and island destinations in Asia for future MICE groups.
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Winners and losers in Asia
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Sirima Eamtako and S Puvaneswary, Bangkok (2008-10-10)
THAILAND, China and the Philippines spring to mind as winners in today's cost-conscious travel planning environment, while Bali and Singapore may be losers, according to buyers at the 2008 IT&CMA and CTW.
A Singapore-based corporate travel manager said cost would be a key decision factor for future events, which would likely be in destinations with lower rates.
She said Bangkok and Thai resorts destinations such as Phuket, with an average room rate at just above US$100, would be the winners compared to Singapore, which charged around US$300 per room night.
Buyers said they were getting an average room rate of around US$100 for a four- to five-star hotel in Bangkok, a fourth of Hong Kong hotels and one-third of Singapore hotels.
China is also competitive, with buyers citing rates between US$100 and US$150.
Australia-based DMC and planner, Directions sales and marketing director, Ms Kim Waterhouse, said: "Thailand will still do well. Forget about the politics. The country has big cities, many beach resorts and good service, all at affordable prices."
Australia-based Incentive House Travel conference and event manager, Mr Les Alford, said the potential for business events from Australia was substantial for Thailand and the Philippines due to their lower room rates and domestic travelling costs, adding that Hong Kong and Singapore would lose their edge due to high room rates.
London-based PRM Brokers Limited director, Mr Glyn J P Abbott, agrees. Mr Abbott said: "The upcoming integrated resorts in Singapore are very interesting. All of the needed facilities and activities will be available under one roof, and that makes planning much easier.
"But Singapore is too expensive, which is why I'm looking elsewhere in Asia. I have used India for conferences and seminars, and it is good value. Furthermore, Singapore is too urbanised and is therefore not as interesting as other destinations."
Others believe Bali will lose some of its ground next year, especially to price-sensitive Asian markets, as hoteliers have increased rates by between US$30 and US$40.
Indonesia's RajaMICE.com CEO, Mr Panca Rudolf Sarungu, anticipates more Indonesian-based companies, which traditionally held their meetings and incentives in Bali, will divert their events to Thailand and Malaysia as the rates were comparatively lower.
He said MICE rates in 2009 for a five-star hotel in Bali were from US$100 per night for a minimum of 50 rooms. In contrast, rates in Malaysia and Thailand started from US$70, he said.
US-based The Marion Group director, Mr Don Webb, said demand for Bali would also be affected by flight cutbacks and air fares which had doubled due to fuel surcharges.
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Taiwan steps up bicycle tours promotion
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John Westbrook, Taipei (2008-10-10)
IN a move aimed at attracting younger visitors, Taiwan is stepping up promotion of the island as a destination for bicyclists.
The Taiwan Tourism Bureau has mapped out six routes in Hualien and Taitung counties that it intends to promote to both international and domestic tourists.
The routes cover sections of Taiwan's east coast and scenic rift valley and include such popular destinations as the Taroko Gorge, Liyutan and Guanshan.
The Tourism Bureau also announced it was cooperating with Giant Bicycles, Taiwan's largest bicycle manufacturer, to promote bicycling in Taiwan.
Giant will display Taiwanese tourism and bicycle travel information at its 2,000 outlets in Britain, Germany, France and the Netherlands.
In a further move to promote bicycling, Minister of Transportation and Communications Mao Chi-kuo said that any future designs for new highways would include room for bike lanes.
The Kaohsiung City Government, a pioneer of setting up bicycle trails in Taiwan, plans to greatly expand its 130km network of bike paths in time for the Kaohsiung World Games which open in July 2009.
A spokesman for the city's Public Works Bureau said 20km of bike paths would be added by the end of this year with another 50km being completed before the games open.
The Taipei county government also recently announced that it would spend NT$770 million (US$23.98 million) before end-2009 to expand its network of bicycle paths. A county official said that plans called for the network to eventually grow to nearly 130km.
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Philippines pursues community tourism
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Ollie Quiniquini, Manila (2008-10-10)
THE Department of Tourism (DoT) is pursuing community tourism through a partnership with the Gawad Kalinga (GK) Foundation.
Volunteer association GK builds colourful houses for indigent families and strives to eradicate poverty and inequity in the Philippines through educational and community programmes.
DoT will promote GK villages as community tourism destinations and is training 120 GK women delegates as guides through a workshop on Tourist Reception and Guiding Techniques for GK's Mabuhay Ladies, a group of women from the various GK villages around Metro Manila.
DoT Tourism Investments Promotions Group head and Office of Tourism Standards director, Ms Victoria Jasmin, said: "This will be greatly beneficial to international tourism since volunteers from different countries are always excited to visit and take part in GK activities."
DoT has created the Communities Benefiting through Tourism (CBT) programme and is working with the International Trade Center, a joint agency of the UN and the WTO, to develop and promote local community products from various provinces around the country.
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Danang draws new luxury hotels
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Sirima Eamtako, Bangkok (2008-10-10)
VIETNAM'S beach resort city of Danang is becoming a luxury integrated resort destination with the increasing entry of luxury hotel chains.
The 198-room Furama Resort is now Danang's only international five-star property. Between 2009 and 2010, new hotels will include Raffles, Hyatt Regency and JW Marriott.
Furama Resort Danang executive assistant manager, Mr Nguyen Duc Quynh, said the new openings would help make Danang more popular worldwide.
Mr Quynh added: "Competition will certainly be on the horizon. However, more luxury properties with more publicity and marketing activities for the destination will make Danang more competitive than other places in Vietnam such as Hoi An or Nha Trang, as well as in South-east Asia such as Phuket or Bali."
One of the new luxury hotel projects is the 271-key JW Marriott Danang Resort. The beachfront resort is part of an upscale mixed-use development, which includes residential villas, a Greg Norman-designed golf course and a convention and exhibition centre.
It is one of VinaCapital's four projects in Danang, worth US$800 million. The company has just broken ground on its fourth project, a US$325 million commercial complex, slated to be the largest in central Vietnam.
Indochina Capital is investing US$100 million on the beachfront Hyatt Regency Danang Resort and Spa and residential developments. The 258-key resort is the second Hyatt in Vietnam, after a Park Hyatt in Ho Chi Minh City.
Kingdom Hotel Investments is developing Raffles Hotels Residences with 138 private units priced between US$285,000 and US$1 million.
Danang is also seeing other upscale developments. The beachfront 182-room Life Resort Danang is slated to open in 2009 with function space for 500 people banquet-style and 750 theatre-style.
South Korea's Daewon Cantavil started building D-City in April. It will comprise a luxury hotel and resort complex, 18-hole golf course, high-rise apartment building, park, school, theatre and a commercial and cultural centre.
US-based Oaktree, too, plans to invest about US$5 billion on the Lang Van Resort complex with 4,000 rooms, a marina, golf course, entertainment area and a cable car system that connects to the top of the Hai Van mountain pass.
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MICE flows into Bintan hotels
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Karen Yue, Bangkok (2008-10-10)
WALL Street turmoil and corporate and MICE (meetings, incentives, conventions and exhibitions) budget cutbacks are proving to be a boon for Bintan hotels.
Hospitality Representative Specialist, Ms Julie Ong said the Indonesian resort had seen its popularity soar with a number of MICE groups shifting out of Singapore this year as a result of tighter budgets. Beneficiaries include Banyan Tree Bintan, Angsana Bintan and Laguna Bintan Golf Club.
The group's area director of sales, Mr Shaun Ding, said: "We have seen a significant increase in demand for our MICE facilities, especially from Singapore. Compared to the same period last year, the percentage of MICE bookings at Banyan Tree Bintan and Angsana Bintan has gone up by 90 and 25 per cent respectively."
He said the group would continue to focus on high-end small- to mid-sized corporate meeting groups next year.
Mr Ding attributed the strong growth in MICE bookings to Bintan's proximity to the Lion City, which allowed Singapore-based corporate groups to travel out of the country without paying air fares and fuel surcharges.
In Singapore, the budget crunch has been good for mid-range and economy properties.
Boutique property, Hotel Re!, which opened in May, pulled in business from international corporations for their middle management employees, a booking trend also noted by Hotel 81, a budget hotel chain.
Hotel 81 spokesman, Mr Chu Poh Yong, said: "We have seen a significant increase in Asian business traffic this year."
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Reporting from 2008 IT&CMA and CTW at CentralWorld, Bangkok
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Trade keeps MICE afloatTTG reporters (2008-10-09)
EVERY crisis - no matter how grim - carries seeds of opportunity, and Doublebill participants insist the impending economic downturn will be no different.
They pointed to pockets of opportunity even in rapidly deteriorating economies, including Europe, now in the grip of a spreading financial contagion that began 14 months ago in the US and saw a number of venerable banking institutions perish, before the government stepped in with a US$700 billion rescue package.
As UK buyers pointed out, businesses in their country would rather spend their revenue incentivising and training their sales force than paying it to the government as corporate tax.
Out of India, the deteriorating economic outlook has prompted IT businesses in particular to use travel to motivate staff. Juniper Networks India international travel manager, Ms Marian Dominic, said: "Before they used to send only staff. Now they are paying full-board for immediate family members."
The bigger reality, however, will be reduced budgets, shorter events and greater demand for ROI (return on investment) benchmarking of incentive trips.
To counter budget reductions, UK-based T-Off, which counts luxury retailers and automotive brands as clients, plans to push low-cost air and accommodation options, and work with suppliers to accommodate reduced budgets.
It is even proposing taking events out of the high-cost UK environment to Asia, where an attractive product and pricing equation would allow T-Off to maximise reduced budgets.
Doublebill participants also pointed to lessons learned from previous recessions: creativity will be crucial in programming and juggling reduced budgets; every dollar counts, so strengthen supplier partnerships; and listen to the client, understand its concerns and objectives to better maximise reduced budgets.
One key concern is to ensure incentive trips are results-oriented. New Delhi-based DMC Global Sojourns chairman, Mr Jyoti Kapur, said: "Previously, incentive trips were mainly leisure-based."
Just as crucial is the suppliers' ability to deliver more bang for the buck on a reduced budget.
"We just have to look for new destinations that can stretch our dollar," said Hong Kong-based Provident Capital Indemnity managing director, Mr Michael Chow, adding that India and China would certainly fit the bill.
"I am also interested in Korea, although it is an expensive destination. However, we could shorten the length of stay."
Ironically, the worsening economic outlook may bring relief for suppliers looking for ways to stretch reduced budgets.
"One pocket of opportunity is that buyers will have more choices and better bargaining power when the economy deteriorates," noted MV Destination Management CEO Clemson Lo.
But Mr Lo insisted there were obvious ways to stretch budgets without sacrificing impact. Half-day treasure hunts that double up as a team-building activity could be organised for a nominal fee, delivering on a client's objective without breaking the bank.
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Reporting from 2008 IT&CMA and CTW at CentralWorld, Bangkok
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New Seoul bureau aims highRaini Hamdi (2008-10-09)
SEOUL'S new entity to market and develop MICE and leisure tourism, the Seoul Tourism Organisation (STO), wants the city to be the world's fifth top city for international meetings by 2010, from its ninth position.
STO, 40 per cent funded by Seoul city and 60 per cent by Seoul's tourism and tourism-related private sector, has under its wings the Seoul Convention Bureau.
The organisation hosted yesterday's dinner to introduce itself to Doublebill delegates. STO president and CEO Mr Samuel Koo, who joined in late-April, said a priority was to further encourage local associations to bid for congresses, and to market Seoul in a "coherent and compelling" manner.
Local associations are proactive to bid, helping Seoul achieve its ranking as ninth in the world and third in Asia. STO is providing more counsel, research and bidding support.
"This has paid big dividends. Mega conventions Seoul has won recently include the 35,000-delegate Herbalife Asia Pacific Extravaganza in 2009, 20,000-delegate World Congress of Dermatology in 2011 and 50,000-delegate Rotary International Annual Convention in 2016."
STO is also encouraging local associations to create new conventions. Mr Koo said Seoul had the "complete offering" for MICE and leisure, and was undergoing a renaissance. He added Seoul "is hastening the construction of three major convention centres".
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Reporting from 2008 IT&CMA and CTW at CentralWorld, Bangkok
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Asian corporates bring cheerTTG reporters (2008-10-09)
ALTHOUGH a continued US and Europe economic malaise will affect Asian countries dependent on these markets for exports, such as Singapore, Hong Kong and China - which will in turn drag other Asian markets dependent on them - the region's business travel market is expected to remain sizeable in the next few years.
One factor that will help Asia ride out the storm is a continued expansion of outbound business travel from Asian markets such as China and India, according to Euromonitor International's research manager, Ms Parita Chitakasem.
By 2012, India is expected to move up as the third biggest Asian business travel source, from sixth in 2007, with an expected 4.9 million travellers.
China is already the top Asian business travel source and will remain so, churning out an expected 17.7 million business travellers by 2012.
Ms Parita argued that other drivers, including an expansion in air and hotel supply, and Asian governments' eagerness to attract more MICE (meetings, incentives, conventions and exhibitions) and business travel, would stimulate business travel.
Going forward, Asia could look to China for the most dynamic all-round growth; India as a key business hub; Hong Kong for the greatest trade events; Singapore, Bangkok and Bali for conference success; Macau for emerging MICE competitiveness and Melbourne for attractive incentive travel options, she said.
The Asia-Pacific 2009 Business Travel Forecast by TTG Media and National Business Travel Association, released yesterday, concurred that business travel would continue to expand, albeit on a slower pace.
Forty-three per cent of corporate travel buyers representing more than 75 of the top corporations in Asia-Pacific and about US$1.5 billion in total business travel spend, believe so.
The survey was conducted between August 12 and September 23. About 30 per cent of the organisations surveyed have already reduced travel-related expenses so far this year, in addition to cost-cutting measures taken in 2007.
These cuts included reducing non-essential travel, number of meetings and individual travellers, encouraging bookings on mid-priced hotels over luxury and ramping up on travel policy mandates.
The survey believes 2009 will not see more cost-saving measures as they have already been put in place in 2007/2008.
The three areas that could be the target of reduced costs next year are encouraging online booking tools, bidding for new travel agency contracts and centralising meetings management.
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Reporting from 2008 IT&CMA and CTW at CentralWorld, Bangkok
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Malaysia's CVB takes shapeS Puvaneswary (2008-10-09)
AFTER 18 years of lobbying by the MICE (meetings, incentives, conventions and exhibitions) private sector, Malaysia will finally have its convention bureau up and running by year-end.
The Malaysia Convention & Exhibition Bureau (MyCEB) will be a subsidiary of Tourism Malaysia, the promotional arm of the tourism ministry, and will replace Tourism Malaysia's existing convention division.
MyCEB director, Mr Mohd Rosly Selamat, is at IT&CMA to network and inform delegates of the bureau and reassure them there will be continuity of MICE-related work currently undertaken by Tourism Malaysia convention division director, Mr Zulkifly Md Said.
Some staff from the current convention division will be seconded for a period of time to ensure a seamless transfer, while others will be transferred to other divisions within Tourism Malaysia, according to Mr Mohd Rosly.
More than just a name change, MyCEB will play a larger role in bringing more international MICE business to Malaysia through focused marketing and promotional efforts.
It will be tasked to identify leads for international congresses and association meetings and provide support to local associations in bidding for events.
It will also provide incentives to local associations to help them to bid and put in place a subvention policy to close the deal.
The bureau will initially be funded by the federal government. It is currently awaiting approval from the Cabinet for start-up capital.
International Congress & Convention Association Asia-Pacific chairman, Mr Anthony Wong, said: "We hope the bureau will also work with academics to come up with relevant MICE-related educational programmes that are vocational-based to prepare students for the working world."
STOP PRESS!
Read each issue of the TTGmice 2008 IT&CMA and CTW Daily online on October 7, 8 and 9 at www.ttgmice.com/daily. The Doublebill event is taking place at the Bangkok Convention Centre at CentralWorld, Thailand.
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Bank of China, MasterCard co-launch Platinum Golf Card
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Singapore (2008-10-09)
BANK of China (BOC) and MasterCard Worldwide have jointly launched the BOC Platinum Golf Card.
This credit card gives golfers unlimited access to complimentary golfing at Pulai Springs Golf Resort in Johor, as well as a host of other golf benefits for golf enthusiasts.
The benefits are coordinated by World Platinum Golf, a leading golf development and event management consultancy.
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Marchesin Exotissimo Cambodia new general manager
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Bangkok (2008-10-09)
EXOTISSIMO Travel has appointed Mr Olivier Marchesin general manager of Exotissimo Cambodia, effective October 1.
Mr Marchesin was most recently managing director of Lao Tai Shan, a major DMC in China.
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Reporting from 2008 IT&CMA and CTW at CentralWorld, Bangkok
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AACVB awakesRaini Hamdi and Sirima Eamtako (2008-10-08)
THE Asian Association of Convention and Visitor Bureaus (AACVB) has made a comeback, holding its first AGM in four years at IT&CMA on Sunday as delegates started arriving.
Formed in 1983 with seven founding CVB members - Hong Kong, Indonesia, South Korea, Malaysia, the Philippines, Singapore and Thailand - and later, China and Macau, the AACVB slowly faded into oblivion from 2000. Much of it was blamed on the restructuring of several Asian CVBs during the period. The association was also dogged with leadership issues since 2000.
At Sunday's AGM, seven of the eight full members - China, Hong Kong, South Korea, Macau, Malaysia, Philippines and Thailand - attended. The other full member, Singapore, was absent due to other engagements, while Indonesia is no longer a member.
A new board of director was elected, with Thailand Convention & Visitor Bureau president, Mr Natwut Amornvivat, as AACVB president; Philippine Convention & Visitors Corp executive director, Mr Daniel Corpuz, as vice president; and Macau as treasurer and secretariat.
The meeting also resulted in new bylaws reducing membership types from five to two. A board meeting scheduled on October 24 in Macau will iron out key strategies going forward and other issues.
Mr NatWut said he hoped AACVB would regain its momentum, resulting more membership, particularly from other Asian countries with huge MICE standing such as Japan, Vietnam, India and Indonesia.
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Reporting from 2008 IT&CMA and CTW at CentralWorld, Bangkok
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Perfect storm hits '09 outlookSharon Desker Shaw and Karen Yue (2008-10-08)
THE spreading financial contagion and frozen credit markets have created a perfect storm that will not only sour the global MICE outlook for 2009 but could fundamentally transform the industry.
What started out as a banking crisis in the US 14 months ago has metastasised across geographies and business sectors and spawned a credit crunch that now threatens to plunge major economies into recession.
Delegates fear the deteriorating economies will set the stage for a grim 2009.
Past president of US-based National Business Travel Association (NBTA), Mr Kevin Iwamoto, believes companies will have to cut budgets and even limit incentives to placate suffering shareholders.
Former CEO of Kuoni Holdings and SR Technics Group, Mr Hans Lerch, also warned of tough times ahead. "The MICE market will be hurt more than the general holiday business, no doubt. We will all have to fight and try to overcome these challenges."
With the crisis spreading to Europe and the International Congress & Convention Association estimating that more than 60 per cent of the continent's association meetings are held in Asia, Europe's woes could hit the region hard. One of the first to limit travel to Europe, Dublin-based International Bureau for Epilepsy will keep its next four to five gatherings on the continent.
Beyond association meetings, the industry is also being deprived of one of its key growth pillars. Mr Lerch said: "A very lucrative part of our market - richly paid executives of financial institutions - might have different worries than thinking about holiday destinations during the next two years."
However, banks are no longer the only economic sector to suffer. Frozen credit markets are depriving companies and consumers of credit lifelines, potentially endangering a range of economic sectors which are major buyers of motivational travel and drive the corporate meetings and conference business.
Even within the relatively unscathed regional markets, signs of a slowdown are emerging. NGT Travel in Australia said enquiries for 2009 programmes had slowed, while Sydney-based PCO Errol Jones Productions had gone conservative on next year's prospects.
Malaysia-based Winter Creations managing director, Mr Alex Chia, added: "Some (corporate clients) have cancelled their incentive plans for 2009. There are also multinational clients who have limited all incentive travel to within Asia-Pacific to keep air travel expenses down."
Unlike 2001, the severity of this downturn will prod companies to take drastic measures, a development NBTA senior executives warned would reshape the industry in the coming years.
NBTA vice-president, Mr Michael Lyons, said: "I see companies asking, 'what's my ROI (return on investment)' for every trip that is made. If they can't measure it, you're going to see incentives eliminated or significantly reduced."
He expects companies to make greater use of video-conferencing, which on the back of technological strides since 2001, could be more acceptable to organisations this time.
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Reporting from 2008 IT&CMA and CTW at CentralWorld, Bangkok
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China 'threat' looms largeS Puvaneswary (2008-10-08)
CHINA is being seen as the biggest competitor for international association meetings and conferences to Asia in these difficult economic times.
A key reason cited is its sheer population size, which ensures a good turnout. As associations rely on registration fees to survive, this inherent advantage puts China in an even stronger position to attract congresses.
Sarawak Convention Bureau regional manager, Mr Geoffrey Lee, said: "In almost every bid, we see China. In order to compete with China, we are now focusing on the association's objectives and needs. We are also looking at niche segments, such as associations related to renewable energy and biofuel, as Malaysia has experts in these areas."
Brunei-based DMC, Goodmiles managing director, Mr TC Chun, added China also had a lot of pre- and post-tour options to offer, posing a threat to smaller destinations.
China is now just second to Japan in attracting international association meetings and conferences to Asia, according to International Congress & Convention Association (ICCA) rankings.
Malaysia Convention & Exhibition Bureau director, Mr Mohd Rosly Selamat, believes China can take a march on the rest of Asian MICE (meetings, incentives, conventions and exhibitions) destinations within five years as it works on improving its software through training its manpower - inconsistent service has been cited as one of China's weaknesses.
However, he is not duly worried. "China has the hardware to attract large groups but Malaysia generally bids for events that have 3,000 delegates and below. Thus, it is not much of a competitor."
Other delegates also believe that since international association meetings rotate globally, the pendulum will not always swing to China.
ICCA Asia-Pacific chairman, Mr Anthony Wong, said: "One should not be duly affected even though the Chinese government is making efforts to raise the standards of delivery through joint-venture relationships with the private sector to provide MICE training for events management."
Jakarta Convention & Exhibition Bureau executive director, Ms Indra Sukirno, added: "China is a new and sexy destination. That is its appeal. However, associations also choose destinations based on their own characteristics and cultural appeal."
Brunei Tourism director of marketing and promotion, Mr Jean Christophe Robles Espinosa, agrees. "Brunei is able to offer a different proposition from China's mega city attractions. Brunei attracts international MICE looking for a peaceful, safe and 'green' country which has comfortable facilities."
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Reporting from 2008 IT&CMA and CTW at CentralWorld, Bangkok
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Short lead time tests serviceKaren Yue (2008-10-08)
LEAD times are getting even shorter, a matter of only a few days for smaller corporate meetings, putting pressure on suppliers to deliver the same or higher standards of service.
Centara Grand & Bangkok Convention Centre at CentralWorld assistant director of convention centre, Mr Jean Naronglith, said: "We have clients coming in for site inspection, like what they see, and pay a deposit on the spot for a board meeting or seminar to be held the day after.
"Regular clients who have used our venues are also coming to us with a booking closer to their event date."
Brunei-based DMC, Goodmiles managing director, Mr TC Chun, said an international pharmaceutical client gave the agency four months to put together a seminar for 500 delegates, when the usual lead time is a year.
The Empire Hotel & Country Club Brunei global business development, Ms Nitaya Pirinyuang, said while RFPs could be sent within the same day, requests for services beyond rental rates and f&b charges would need more time.
She added: "Unfortunately, clients are getting more demanding and we have to try our best to meet their expectations."
Short lead times increase service pressure on hotels' and convention venues' teams, and restrict venues' ability to forecast business in advance.
However, Shangri-La Hotels & Resorts director of sales and marketing, Ms Agnes Pacis, pointed out events booked over a short lead time gave the property an unexpected bonus business.
She said DMCs and PCOs played an important role in advising clients on realistic timelines to put an event together.
Mr Chun said: "As a professional DMC, we have to deliver quality regardless of the lead time."
But Singapore-based DMC, MICE & Peas managing director, Mr Lee Soo Han said not all MICE (meetings, incentives, conventions and exhibitions) events could be executed within too short a time.
For example, he added, qualified conference speakers typically had to be booked up to 24 months in advance.
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Reporting from 2008 IT&CMA and CTW at CentralWorld, Bangkok
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Regional meets act as bufferSirima Eamtako (2008-10-08)
ASIA'S MICE (meetings, incentives, conventions and exhibitions) industry must expand the regional meetings markets to buffer itself against an anticipated fallout in international meetings and delegate numbers to Asia, due to the global financial crisis and high travel costs.
During a panel discussion at the second Asian Meetings Industry Leaders' Summit on Monday, Dublin-based International Bureau for Epilepsy international director of meetings, Mr Richard Holmes, said there was potential for Asian meetings to grow within Asia, particularly under the current US and Europe financial crises.
He added the biannual International Epilepsy Congress, which usually attracted about 5,000 delegates, would remain in Europe for the next four or five rotations since the majority of delegates were from Europe and would likely not travel longhaul due to high travel costs.
In contrast, Mr Holmes said the biannual Asian and Oceanian Epilepsy Congress had grown steadily since the event was first staged with just 600 delegates from the region.
"But this year's event held in China in May attracted more than 2,000 delegates with 600 delegates each from China and India. We expect the numbers to grow further at the next event in Australia in 2010 and the Philippines in 2012."
But, while there was the potential to expand the regional meetings market, the industry should maintain its longhaul presence and use the down time to tackle issues. Former CEO of Kuoni Holding and SR Technics Group, Mr Hans Lerch, said: "Under the current crisis, business will certainly get worse.
"But there is the opportunity in the bad times for the Asian meetings industry to revitalise and enhance manpower training. The winner is the one that constantly invests in professionalism."
Challenges facing the Asian meetings industry highlighted during the discussion included inconsistency of product and services, lack of innovation and creativity, language skills and operating cost consciousness.
Victoria-based Incentive House Travel conference and event manager, Mr Les Alford, said the Asian meetings industry seemed to adopt Western models and overlooked its own people's capabilities.
"What we need to see is more locals entrusted to handle events. Locals can come up with cultural perspectives that are different from the foreigners' perspectives," he said.
STOP PRESS!
Read each issue of the TTGmice 2008 IT&CMA and CTW Daily online on October 7, 8 and 9 at www.ttgmice.com/daily. The Doublebill event is taking place at the Bangkok Convention Centre at CentralWorld, Thailand.
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Further clashes worry Thai trade
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Watchiranont Thongtep, Bangkok (2008-10-08)
THE Thai travel trade has expressed concerns over October 7's fresh eruption of clashes between the police and anti-government protestors, which at press time left 443 injured and two dead.
Thai-Chinese Tourism Alliance Association president, Mr Sidivachr Cheewarattananaporn, said his inbound Chinese agent members had already received many enquiries from Taiwan and China on the situation.
The two source markets suffered the largest loss in tourist numbers and revenues as a result of the two-week emergency decree in September.
Thai Hotels Association president, Mr Prakit Chinamourpong, said the violence and the global financial crisis would cause Thailand to miss its tourism receipt target for this year.
He added the violence would hurt onward bookings in coming high season which would be dropped from 90 to 80 per cent occupancy rate, particularly from Asian countries.
Thai Travel Agents Association president, Mr Apichart Sankary, said it was too early to gauge the impact. While the association would continue to observe the situation, he said he was optimistic bookings from longhaul markets would remain intact for this high season.
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Mumbai International Tourism Expo to launch in 2010
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Mumbai (2008-10-08)
MAHARASHTRA Tourism Development Corporation (MTDC) will be holding Mumbai International Tourism Expo (MITE) 2010 from 7 to 9 January 2010 at Bombay Exhibition Center.
The event will be organised by the Conference and Exhibition Management Services (CEMS) and CEMS (India) Exhibitions with the support of various Indian tourism organisations.
MITE 2010 event will also incorporate two high-growth tourism sectors under the MICE India 2010 and the CRUISE India 2010 shows to provide a wider spectrum of tourism opportunities.
50,000 Indians set sail every year on different cruises, with an annual growth rate of 20 per cent to 25 per cent while the MICE segment is growing at a rate of 15 per cent to 20 per cent annually.
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Reporting from 2008 IT&CMA and CTW at CentralWorld, Bangkok
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Thai MICE on a rebound
Sirima Eamtako (2008-10-07)
THE Thai industry has reported that MICE (meetings, incentives, conventions and exhibitions) bookings for the last three months of the year are back on track and enquiries pointed to a pick-up in business for next year.
Thailand Convention and Exhibition Bureau (TCEB) president, Mr Natwut Amornvivat, said the bureau would stick to this year's target of 947,600 MICE visitors and 65 billion baht (US$1.8 billion) revenue.
Grand Hyatt Erawan general manager, Mr Richard Greaves, said the protests cost the hotel more than 1,000 room nights or about 35 per cent of business in September. "Despite the political turmoil, we performed at a good average occupancy rate of 50 per cent for September. It showed the resilience of Thailand as a destination.
"We have also managed to retain 25 MICE groups booked for October while business for November and December looks good."
Bangkok-based DMC, Diethelm Events, is confident of a strong October despite losing about 27 per cent of the month's business compared with the same month last year, according to executive manager, Mr David Barrett.
"However, October is still a bumper month for us with confirmed events. The flood of cancellations that came in weeks back has dried up and it is now all-hands-on-deck to cope with new enquiries for 2010 and a few for next year," he said.
Bangkok-based planner, Capito Consulting managing director, Mr Volker Capito, said the company managed to retain an incentive group of 300 from German brewer Veltins scheduled from September 20 to 25, immediately after Bangkok lifted the emergency decree. Veltins is now considering a larger incentive group to Thailand next year.
However, the recent arrest of a prime mover of Thailand's anti-government protests has cast a pall on what has been a swift return to business-as-usual for the MICE sector. At this point, it is unclear if the arrest will derail the new prime minister's efforts to end the anti-government protests.
Prior to this turn of events, Dusit International sales and marketing vice-president, Ms Jennifer Cronin, said the hotel group had expected the political climate to ease before year-end, and had looked forward to double-digit growth next year.
She said Bangkok's two-week state of emergency decree and subsequent negative international media coverage caused the group's business in September to slip 30 per cent behind forecast.
"We will see about 20 per cent increase in business in the last three months of this year over the same period last year, but the figures will be 10 per cent behind budget."
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Reporting from 2008 IT&CMA and CTW at CentralWorld, Bangkok
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Singapore hotels draw lessons from concluded F1 event
Karen Yue (2008-10-07)
THE recently concluded SingTel Singapore Formula One night race has provided lessons for Singapore hoteliers on how they could capitalise on the widely-broadcast event.
As is usually the case when destinations host large events, the industry said Singapore lost a sizeable amount of MICE business during the late-September's night races. High room rates, room shortage and traffic gridlock had kept groups away.
Park Hotel Group senior vice-president, Mr Mohd K Rafin, said the group would look at encouraging hard-core race fans, who make up 60 to 70 per cent of the attendees, to extend their stay by developing attractive hotel deals. "We also need to attract business and incentive groups for the pre- and post-race period," he added.
For future races, hoteliers hope the authorities will remove the 20 per cent levy on non-trackside hotels and lower the 30 per cent charge for trackside hotels so they can provide more attractive accommodation deals.
Corporate travel agencies and incentive houses also want Singapore GP to provide greater flexibility for group ticket bookings, improve accessibility for enquiries and bookings, and disseminate race information earlier.
Also on the wish list is minimum road closures. The closures during the September race period had made it difficult to transport MICE groups who were in town.
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Reporting from 2008 IT&CMA and CTW at CentralWorld, Bangkok
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MPI calls off conference
Karen Yue (2008-10-07)
MEETING Planners International (MPI) is postponing its inaugural Asian Meetings and Events Conference indefinitely, citing the impact from a weakened financial market on international attendance.
The conference was slated for October 24 and 25 to ride on ITB Asia in Singapore and would have featured speakers from around the world to address issues such as manpower challenges in the region and the need for professional certification. MPI was hoping to attract some 250 delegates.
MPI director of operations Asia-Pacific, Mr Michael Tay, said: "The escalating economic uncertainty in North America, Europe and Asia is impacting the expected international attendance. Corporations are now more concerned about keeping the business running. Additional expenditure on training and travelling is not their priority now, and this is evident in the low registration numbers we have received prior to announcing the postponement.
"There are reports that the world would see a long drawn out recession, so it is very difficult for us to say when we will relaunch the conference. A full refund will be given to the delegates."
STOP PRESS!
Read each issue of the TTGmice 2008 IT&CMA and CTW Daily online on October 7, 8 and 9 at www.ttgmice.com/daily. The Doublebill event is taking place at the Bangkok Convention Centre at CentralWorld, Thailand.
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WORLDHOTELS adds Chennai property
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Hong Kong (2008-10-07)
WORLDHOTELS has further expanded into India with the addition of The Pride Hotel, Chennai, to its First Class Collection.
The Pride Hotel is in the heart of Chennai's business and entertainment district, 18km from the airport and 3km from the central railway station.
It has f&b outlets, meetings facilities, business centre, swimming pool and health club.
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Renaissance Harbour View appoints new director of marketing
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Hong Kong (2008-10-07)
RENAISSANCE Harbour View Hotel Hong Kong has appointed Ms Cristy Silvestre-Carreon director of marketing, effective September.
Ms Silvestre-Carreon has 14 years of industry experience. She was most recently director of marketing for Renaissance Makati City Hotel.
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Full-service carriers confront LCCs
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Sim Kok Chwee, Singapore (2008-10-06)
ON the highly competitive and profitable Singapore-Kuala Lumpur route, full- service carriers are unleashing an all-out battle against low-cost carriers (LCCs).
A week after the latter announced their full-blown schedule that will kick in on December 1 - six times daily for AirAsia, five times daily for Tiger Airways and two or three times daily for Jetstar Asia Airways - SilkAir will join Singapore Airlines (SIA) and Malaysia Airlines in offering up to 15 daily code-shared flights.
Starting October 26, SilkAir becomes a new operator on the route with two daily flights alongside SIA's five daily flights. On December 1, SilkAir and SIA will each operate four daily flights and most tickets - except for those with specific fare-related restrictions - may be used on the services of all three airlines.
SilkAir recently began retrofitting its fleet of A320s and A319s with a new cabin interior, a timely upgrade to cater to the strong corporate travel demand on this route.
Since the limited entry of LCCs on the route earlier this year, fares offered by the full-service carriers have not dropped significantly and this is expected to change when the two cities end up with almost 30 daily services (including a daily connection provided by Japan Airlines).
With greater capacity and lower fares, hotels and other tourism stakeholders may see the opportunity for tactical promotions with shorter lead time to shore up occupancy and yield.
LCCs have already begun offering free and very low fares for travel starting December 1 and the impact of such promotions is expected to extend beyond the other airlines. A luxury coach operator has already announced moves to emulate airlines and provide both cabin services and a hot meal en route.
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KTO to hold 2008 Asia-Pacific Tourism Investment Conference and Expo
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Vivian Lee, Seoul (2008-10-06)
THE Korea Tourism Organization (KTO) will be holding the 2008 Asia-Pacific Tourism Investment Conference and Expo at the COEX, Seoul from October 29 to 31.
It is hoped that the event, sponsored by the Ministry of Culture, Sports and Tourism, will contribute towards the globalisation of the Korean tourism industry, as well as cultivate new growth.
The conference will centre on the development of the industry, and will analyse effective tourism development and investment activities. Other areas to be covered include the stage-by-stage development of theme parks, budget airlines, and the penetration of North American high-end hotels into the Asian market.
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Positive outlook for India hotels, says Jones Lang report
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New Delhi (2008-10-06)
THE long-term outlook for India's hotel industry remains upbeat as the country's tourism industry experiences unprecedented growth, according to Jones Lang LaSalle Hotels' latest report, India Digest 2008.
India has seen double-digit growth in foreign visitors over the last five years, with five million arrivals in 2007. Revenue for the same period increased by 34 per cent.
The strong performance of India's corporate sector and the growth of the economy has led to an unprecedented surge in business travel. Aggressive growth in revenue per available room has been recorded in Delhi, Mumbai and Bengaluru in the past five years.
Jones Lang LaSalle Hotels executive vice-president India, Mr Sudeep Jain, said: "In a global context, given the size of the economy, the population and the future potential of India as a tourist destination, the demand fundamentals are very good.
"We expect that continued economic growth, increased interest in the Indian markets and improved international access, combined with the modernisation of major airports, will boost inbound travel in India."
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Best Western to open first Hua Hin hotel
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Bangkok (2008-10-06)
BEST Western International has signed an agreement with Siri Development Co. for the opening of its first hotel in Hua Hin.
The 60-room Best Western Green Garden Resort will be located in Petchkasem Road, the main highway running through Hua Hin along the west coast of the Gulf of Thailand, and will be within walking distance to beach areas.
Hua Hin town, Hua Hin Airport and Bangkok are about five minutes, 15 minutes, and two to three hours away by car respectively.
The property is slated to open in 2010.
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Seiler is Park Plaza Sukhumvit Bangkok new general manager
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Bangkok (2008-10-06)
PARK Plaza Sukhumvit Bangkok has appointed Mr Marco Seiler general manager.
Mr Seiler was most recently general manager of Amari Nova Suites Pattaya and Nova Platinum Pattaya. He has a decade of experience in the industry.
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Karen Yue, Singapore (2008-10-03)
CHINA reinstated visa-free entry for Singapore travellers on September 19, and travel agents are reporting an even stronger increase in enquiries and bookings for the destination.
Post-Olympic leisure bookings have picked up for Singapore outbound agents, but the inconvenience of visa applications had stunted potential growth earlier.
At press time, UOB Travel was experiencing 20 per cent more phone enquiries; SA Tours a 12 per cent jump in bookings; and Asia-Euro Holidays a strong 20 per cent in bookings, and an excellent take-up in air tickets, right after the lifting of visa requirements.
Full report in TTG Asia October 3 - 9
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S Puvaneswary, Kota Kinabalu (2008-10-03)
AIRBORNEO is scoring a first and also giving the east Malaysian state of Sabah a boost with the launch of special direct charter flights from Kota Kinabalu International Airport to Australia, Japan and China.
The state's inaugural charter flights, operated on a Boeing 777 aircraft with 270 seats in a two-class configuration, will fly to Sydney and Tokyo, from November 15 and 19 respectively.
The return from Sydney is on November 21 and on November 23 from Tokyo.
Full report in TTG Asia October 3 - 9
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ATTA forecasts stagnant growth for Thailand tourism next year
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Watchiranont Thongtep, Bangkok (2008-10-03)
THE Association of Thai Travel Agents (ATTA) anticipates stagnant growth in visitor arrivals and tourism receipts for next year.
President Mr Apichart Sankary said business for next year would be tough as leisure travellers - the country's key market - might travel less given higher travelling costs and the sluggish economy.
He added concerns over safety and security following travel advisories from more than 20 foreign governments might affect their decision to travel to Thailand.
To soften the impact, ATTA is pleading with hotels to maintain this year's room rate structure for the next contractual season, while urging its members to exercise cost-saving and avoid imposing increments on tour programmes.
Meanwhile, the Tourism Authority of Thailand has adjusted its targets to 14.8 million visitor arrivals and 547 billion baht (US$16 billion), down from the second revised target of 15.5 million tourists and 600 billion baht revenue.
Last year, the country attracted 14.46 million visitor arrivals and generated 547.7 billion baht.
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Business events Australia gathers buyers for Asia mission
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Michael Hoare, Hong Kong (2008-10-03)
AUSTRALIAN business events suppliers and operators spent last week (September 22-27) sourcing and qualifying key corporate and agent buyers as part of Business Events Australia's 2008 Asia Mission to Hong Kong and Shanghai.
Tourism Australia managing director, Mr Geoff Buckley, said: "The aim of the Team Australia mission is to improve international buyer knowledge and understanding of Australia as a business events destination."
China is Australia's fastest growing incentive market. Between 2002 and 2007, the Chinese incentive market to Australia rose 170 per cent, with particularly strong growth last year - up 48 per cent.
Head of Business Events Australia, Ms Joyce DiMascio, said: "Australia is investing more than A$3.7 billion (US$2.9 billion) in new infrastructure and products, and this mission will allow our partners a timely opportunity to showcase this."
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Jin Air gears up to counter stiffer competition
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Sim kok Chwee, Singapore (2008-10-03)
KOREA'S low-cost carrier (LCC) sector is heating up with at least four airlines in operation and since July 17, new entrant Jin Air has begun operating eight daily flights between Gimpo and Jeju.
A sole 189-seater Boeing 737-800 leased from parent company Korean Air will be augmented later in October by a second aircraft and the number of Gimpo-Jeju flights will be doubled to 16 times daily.
Plans are already afoot for a second route linking Gimpo and Busan with eight daily flights by December and a third route linking Busan and Jeju by April 2009.
Jin Air hopes to launch international flights in summer 2009 from Incheon Airport to China, Japan and South-east Asia with a pair of 292-seater A300-600s. CEO Mr Kim Jae Kun said that on some international routes, Jin Air might operate alongside and complement the services of Korean Air.
The LCC's website will soon also be available in English to facilitate flight bookings by international travellers.
Meanwhile, with load factor currently hovering around 40 per cent and Mr Kim expecting Jin Air to take two years to break-even, a new competitor named Air Busan looms over the horizon, boasting parent company Asiana Airlines.
However, even as these airlines compete head-on with incumbents such as Hangsung Airlines, Jeju Air, Korstar Airlines and Yeongnam Airlines, they have recently found a common platform to band together.
Their collective effort in protesting against the establishment of a Korea-based LCC by foreign entities has successfully caused Incheon Tiger Airways - a joint venture between the city of Incheon and Singapore's Tiger Airways - to put off its application for a license indefinitely.
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Watchiranont Thongtep, Bangkok (2008-10-02)
THE Thai trade is launching promotional packages in a bid to fill up an anticipated 10 to 20 per cent drop in bookings in the last three months of the year, blamed largelyy on Bangkok's two-week state of emergency decree from September 2 to 14.
Hotels, spas and golf courses in Phuket, Phang-nga and Krabi are offering up to 30 per cent discount for for November.
Bangkok hotels are either discounting or promoting special packages for specific periods. Only Chiang Mai hotels are not relenting and that is because rates are already so low.
Full report in TTG Asia October 3 - 9
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30 vie for PATA's hot seat
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Raini Hamdi, Singapore (2008-10-02)
DESPITE the PATA CEO position being a hot seat, 30 applicants applied for the job, with sources saying the body of candidates included a string of "familiar" PATA players and a handful of newcomers.
Much rests on the new CEO appointment as a signal of how serious PATA is about change and relevance, with pressure mounting it should draw into its fold more young leaders who are now running the industry and who are having to cope with new generation issues.
PATA had advertised for someone preferably in the 45- to 55-year-old age bracket, with strong travel industry experience, finance and media-savviness and a "personality".
But young industry CEOs, interviewed by TTG Asia on what PATA must do to engage them, said it was not about age but attitude.
Full report in TTG Asia October 3 - 9
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PTAA slams IATA for bully tactics
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Ollie Quiniquini, Manila (2008-10-02)
THE Philippine Travel Agencies Association (PTAA) has lashed out at IATA's zero-tolerance policy that saw an agency declared in default over a clerical error.
Globetrotters, INC. was declared in default on August 19 when a typographical error resulted in its August 15 payment being short of 30 pesos (US$0.65).
When notified of the short payment, Globetrotters paid the balance that very day. The agency also paid a US$300 reinstatement fee and payment for tickets issued until August 15.
But its ticketing facility was only partially restored on August 27.
Full report in TTG Asia October 3 - 9
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TAT, THAI to co-launch Visit Thailand Year invitation
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Bangkok (2008-10-02)
THE Tourism Authority of Thailand (TAT) and Thai Airways International (THAI) will be launching the invitation to Visit Thailand Year 2009 campaign as part of the country's tourism recovery plan.
The campaign, to be launched on October 8, will see the two organisations working together under a co-branding logo for tourism promotion and co-marketing at global key markets.
One of the key activities is the Thailand Invitation Mega Familiarisation Trip, which will be held from October 8 to 12 for more than 900 international travel agents, tour operators and media representatives.
The trip will feature 16 routes in the northern region and 14 routes in the north-eastern and Andaman coastal areas. THAI will be providing 840 air tickets for participants of the trip.
The flag carrier is also offering a special Amazing Thailand Fare promotion for passengers travelling on THAI's domestic routes from October 1 to March 31, 2009.
Tickets are being sold at the airline's oversea offices, for passengers travelling to/from/via Thailand. The price will be US$150 for the first three coupons and US$60 for each additional flight coupon.
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Inaugural summit to greet Routes attendees
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Singapore (2008-10-02)
THE 14th World Route Development Forum (Routes), an annual platform for airports to get connected with airlines, will be held in Kuala Lumpur from 12 to 14 October boasting a record attendance by more than 300 top airlines from around the world.
Routes will also launch the inaugural Annual Tourism and Air Service Development Summit (TAASS) on 12 October as part of the event.
The full-day summit will address current issues for the airline and airport community, including climate change topics. It will feature industry personalities such as World Tourism Organisation assistant secretary general, Mr Geoffrey Lipman, Thomas Cook Airlines director, Mr Shaun Monnery, Airport Strategy & Marketing principal consultant, Mr Jon Woolf, and Malaysian Airlines senior general manager for network and revenue management, Datuk Bernard Francis.
Routes will also discuss the state of higher oil prices and what can be done to minimise the impact on industry stakeholders.
Tourism authorities will be entitled to free participation for one chief executive or director- general, while delegates will pay £495 (US$543) each.
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Japan Tourism Agency opens
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(2008-10-02)
THE long-awaited Japan Tourism Agency was established on October 1. Mr Yoshiaki Honpo was appointed the first commissioner of the agency.
Mr Honpo had worked for the Japan National Tourist Organization (JNTO) at Geneva, OECD in Europe, as well as Japan Post (privatised post office).
The new agency under the wing of the Land, Infrastructure, Transport and Tourism Ministry is expected to improve Japan's tourism industry, such as raising foreign visitor numbers to 10 million by 2010.
Last year Japan received 8.4 million foreign visitors but the number has recently weakened from the sluggish world economy.
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