Asian event planners are fielding more enquiries on Japan as the yen continues its slide, standing at a 34-year low this month, which now grants clients the ability to pick better ground experiences for their attendees.
Fioren Cahyadi, travel services manager with Destination Tour in Indonesia, told TTGmice that Japan requests are up, and the stronger buying power has allowed the agency to deliver greater value to their clients. Clients are also upgrading their programme with better hotel stays and more local experiences.
Malaysia’s MEP Meeting & Exhibition Planners has observed extended stays among its clients, with many going for additional sight-seeing, shopping, and exploration beyond the city.
The agency’s events marketing and communications director, Jonathan Ng Hann-Tung, also told TTGmice that a “cheaper” Japan has motivated event attendees to splurge on “big ticket and luxury items for themselves at premium outlets” and clients to subscribe to “premium experiences such as private dining in restaurants and boat rides”.
Ng shared that luxury bags and watches, as well as vintage items, are commonly snapped up by top achievers on their shopping spree.
MEP will take an 80-plus-pax group to the Kansai region for a week this October. “They have chosen to be hosted in Kobe, where there is more affordable accommodation, in order to shift their budget to shopping in Osaka and exploration of the outskirts of Kyoto and Nara,” Ng detailed.
Jessie Heng, regional director with Singapore-based MICE Maestro, said the favourable exchange rate against the Singapore dollar could result in 15 to 20 per cent savings on activities and accommodation in Japan.
However, these savings would have to be channelled to pricey airfares between Singapore and Japan, which have more than doubled since the post-lockdown reopening.
“While there is intense interest in taking their events to Japan, the reality of high airfares is a strong deterrent for some of our clients,” said Heng.
For clients who are determined to reward their top achievers with a Japan experience, Heng encourages travel during low seasons when airfares are more affordable.
She added: “Clients who can be flexible with their event dates have been able to maintain their initial budgets for Japan.”
While recognising that the Singapore-Japan airfare spike is a hot topic now, Roger Ong, director, client management and M&I, travel services with Singapore-based Plover Trip, said clients could ease the price pinch by choosing to fly with LCCs or take indirect flights.
“For instance, groups can consider a South Korea and Japan incentive trip combo, flying from Singapore with budget carrier T’way to Seoul and then onwards to Japan on another LCC,” suggested Ong.
Meanwhile, Fioren has brushed off the airfare woe, saying that clients have already gotten used to the new normal of flying after two years.
“Furthermore, land tour prices are better now, and that makes up for the higher airfares,” she added.
In response to TTGmice’s queries about the impact of the weakened yen on events demand, a spokesperson from the Japan National Tourism Organization (JNTO) Singapore MICE Team said “Japan’s appeal as a destination is not greatly affected by exchange rates”.
The spokesperson reasoned that Japan has always held strong appeal among event groups, due to its “special experiences and high-quality services for incentive travel, and unique venues utilising traditional Japanese architecture”.
“Japan has been increasingly featured on the bucket list of incentive travel organisers,” added the spokesperson.
According to the JNTO Singapore MICE Team, B2B meetings hosted in 2023 to connect incentive travel partners with planners from seven Asian markets attracted some 200 companies, indicating “Japan’s growing popularity as a destination for business events in Asia”.
However, the spokesperson acknowledged that a weaker yen was impetus for planners to tick Japan off their bucket list.
The tourism bureau will continue to spur interest among Asian event planners through face-to-face engagements in coming months, with two seminars planned in 3Q2024 – one aimed at incentive travel agencies, and another at association leadership and meeting organisers. Both events will present opportunities to connect with Japanese suppliers. Planners will also be invited to attend the annual Visit Japan MICE Mart in September 2024 and a fam trip that will be determined later on.
