Crossing into the MICE realm from the national telco, the new president of Thailand Convention and Exhibition Bureau, tells Karen Yue that he is having fun learning the ropes and applying his IT know-how to boost the destination’s marketing reach

You started your career with TOT Public Company and was with it for 20 years. Why the crossover to the MICE industry?

The business events industry is not entirely new to me. When I was with TOT I had the chance to participate in a number of trade exhibitions and meetings. I believe the telecommunications industry contributes 10 per cent of business to the MICE industry.

Just as the telecommunications industry is important to Thailand’s economy, so is the MICE industry. One per cent of Thailand’s GDP comes from the MICE industry, and MICE revenue ranks third highest for the country, after export and tourism.

I believe that with my leadership, stronger promotions and better planning, MICE revenue can grow even more.

But MICE industry is still quite different from what you have been so used to. Have you been put through a rigorous crash course on the workings of the MICE realm since joining the Thailand Convention and Exhibition Bureau (TCEB) on May 16, 2013?

I am very fortunate to have joined TCEB with a very strong and motivated team in place. This team has taught me a lot about the MICE business and I am loving every moment. With them working with me, coming to work feels like partaking in a fun hobby!

Since coming onboard, I’ve joined the team in attending several trade shows such as IMEX America in Las Vegas, IT&CMA in Bangkok and AIME in Melbourne.

With so much attention on the political demonstrations in Bangkok, has it been difficult trying to sell Thailand at these trade events?

Attitudes of buyers and media are different everywhere. At AIME, I was delighted to find that Australian delegates still regard Thailand as a peaceful destination. They recognise that Thailand offers good service and quality, and a mix of adventure and entertainment. Australia is an important market for Thailand, so this is great news.

Before coming to Melbourne (for AIME), we had braced ourselves for tough media questions about the demonstrations. We had also expected buyers to stay away from the Thailand booth. Fortunately, journalists and buyers at the show were very supportive and most only wanted to know what new things TCEB is doing to push Thailand. We heard that Thai Airways had 26 appointments each day at AIME!

The demonstrations occupy only a small area in Bangkok.Business is on as usual in the rest of the city and other destinations in Thailand. There are six international airports in the country to take you to other parts of Thailand. AIME provided an excellent platform for us to reinforce those messages.

So what new initiatives do you have up your sleeves?

TCEB established a Digital MICE team on Feb 25 and it is behind the bureau’s new online marketing and communication strategy. This is an example of what I’m bringing to the table for TCEB – I have good IT knowledge from my previous job and am applying that to new digital initiatives, with inputs from the team of course.

Part of the new online marketing and communication strategy is the creation of an information management system, a comprehensive database of past events held in Thailand that we can use to project and plan for the future. We intend to share such market intelligence with Team Thailand, that is, the Ministry of Foreign Affairs and Ministry of Transport.

We will also make some information accessible for industry players. For instance, we have hired a company to conduct an annual survey on the MICE industry, and findings will be distributed. Hopefully, they can use that data in their business planning.

We have also launched www.businesseventsthailand.com to provide MICE specialists with all the information and materials they will need to sell and promote Thailand as a destination. You can get MICE statistics, destination features and suitable attractions, supplier contacts, and testimonials from people who have taken business to Thailand or attended trade events in Thailand.

Sounds like you and your team will have a busy year!

(Laughs) That’s not all. We are powering up our social media reach. In January we reached out to event bloggers and PCOs through the MICE Destination Review Competition, in partnership with Thai Airways. By inviting these individuals to share their experiences (in five of Thailand’s MICE cities) via social media, we hope to improve future MICE travellers’ impression and experience of Thailand. (Five finalists were shortlisted and put on a tour that showcased the MICE capabilities of Bangkok, Phuket, Chiang Mai, Pattaya and Khon Kaen from January 19-25.)

Then there is also the Spice Up Your Business agenda campaign which will start in April to offer perks such as flight tickets to MICE visitors. (Days after the interview, TCEB issued a press release announcing details of its online marketing strategy which will be implemented under three key frameworks, including the development of the above-mentioned database, production of digital sales and marketing tools, and innovative online marketing and public relations activities. Spice Up Your Business campaign is part of three new initiatives; the other two being Dream Meeting Contest and Itinerary Contest.)

Do you think these online activities will soften the impact of the political protests on Thailand’s MICE business?

Tourist arrivals to Thailand are actually holding up despite the demonstrations and news coverage, although MICE clients are taking longer to consider and confirm their bookings.

In January this year, Thailand saw 2,319,821 visitors. The same month last year it was 2,318,447. Visitor arrivals are still averaging at two million the past few months. Between October and December 2013, Thailand welcomed 186,864 MICE travellers, up 5.2 per cent over the same period in 2012.

I take that to mean that TCEB will not be adjusting its MICE targets for 2014.

We are sticking to our targets. You could say we are a little fortunate that the demonstrations are happening in months that are usually low season for business event. If this problem continues into March, we may have to play catch up in the later part of the year but we will still work towards our existing target. (On February 28, protestors issued a statement to say they will end blockages in key parts of Bangkok and consolidate their movement at Lumpini Park instead.)

We have several initiatives in place to motivate meeting planners to keep choosing Thailand, such as the Thai CONNECT campaign which comes with subvention. On top of current programmes, we have announced new ones such as Be My Guest (a hosted buyer programme that provides complimentary room nights to entice business event travellers to extend their stay in Bangkok), additional meeting and convention support through Meetings Bonus and Conventions Bonus rewards packages, and Business Up 2 U (a fixed subsidy programme for exhibitions).

How useful are these subvention programmes in rebuilding MICE buyer confidence in Bangkok?

We hosted a party for 100 Australian MICE buyers during AIME 2014 and took the chance to give our guests an update on the political demonstrations in Bangkok, showcased the various destinations in Thailand, and presented all the new campaigns and subvention programmes we have.

By the end of the evening, we got a confirmation from Tupperware Brand for a 500-pax event in May.

The next morning we got news that a 300-pax group is also planning to head to Bangkok.

We are not trying to use money to solve our problems, but these subvention programmes can help to compensate clients for the extra costs they may have to fork out for (contingency plans).

The Muslim MICE market is growing. The momentum to cater for it is rising, Raini Hamdi reports

Kuoni Group Travel Experts (GTE) now moves as many as 150 Muslim-only tour groups a year from key Asian markets to European destinations and, increasingly, destinations in the Middle East and the US. These are small families, government groups or large MICE movements with up to 1,000 travellers. Kuoni GTE’s head of MICE Sales Asia, Reto Kaufmann, estimates that annual growth could be as high as 30 per cent, with the MICE market increasing fastest.

Last year, the company saw double-digit increases in roomnights booked by group travellers from Indonesia and India, while those from Bangladesh quadrupled. China, Malaysia, the Philippines and Thailand also offer significant numbers of potential Muslim travellers. China, with a Muslim population of 23 million, recorded a six per cent rise in roomnights booked with Kuoni GTE last year.

According to a Pew Research Centre forum, 72 countries today have a million or more Muslim inhabitants and 60 per cent of them live in Asia-Pacific. Catering to Muslim travellers beyond haj and umrah pilgrims seems a no-brainer, with rising disposable income and a younger demographic among them. But that it’s still a novelty shows how fraught it is with challenges.

One of the fundamental challenges lies in a lack of understanding that pork-free is not necessarily halal. “(Muslim) travellers who could accept no-pork meals would go to non-Muslim countries, but those who could not will not,” said Garuda Indonesia Holidays COO, Widjaya Hadinukerto.

Finding halal restaurants and Muslim-friendly facilities remain the fundamental challenge – even in countries such as India, South Korea, Japan, Taiwan, Hong Kong and China which have recognised the importance of Muslim travellers, “only parts of the programme comply with Islamic rules”, said Dannie Soesilo, commissioner of an Indonesian agency, Sakinah Nurhidayah.

Not all countries have halal certification bodies and in fact rely on travel experts to develop halal products, added Widjaya. Accreditation of agencies is therefore becoming important, Widjaya said.

But being halal, like eating organic, can be expensive, and agency heads like Adam Kamal, general manager of Rakyat Travel Malaysia, expressed angst over operators who keep costs down by taking clients to pork-free restaurants whereas his agency uses only certified-halal ones. “Meals at these restaurants are more expensive and may be out of the popular tourist spots. Thus there is additional transportation cost incurred,” Adam said.

Finding halal restaurants that can cater to big groups is a struggle, said Cooper Huang, CEO, Harmony Tours & Travel, Malaysia, who sometimes work with hotel ballrooms but outsource the cooking to chefs from halal restaurants.

Wide open space

The space to cater for Muslim groups is therefore wide open. Last December Kuoni GTE tied up with Crescentrating, a Singapore-based company barely five years old, whose primary business is to help the travel industry cater to Muslim clients through consulting, workshops and market research. It also rates hotels’ halal-friendliness and is now moving to accredit more than 100 travel agencies over the next 12 months. Most of these agencies will be from South-east Asia, the initial target market for the first eight curated Muslim tour packages which the partnership launched in February. The tours cover five European cities, Paris, London, Rome, Berlin and Geneva, and are aimed at Muslim MICE and family groups from Asia and Europe.

“Our rating enables travellers to understand clearly to what degree their needs will be met with respect to availability of halal food, prayer facilities, service during Ramadan and level of non-halal activities and amenities in the hotel (for example, alcohol served in the hotel, separate pool and spa facilities, etc),” said COO, Dany Bolduc.

Asked what criteria it uses to accredit travel agencies, Bolduc said: “Three main criteria: They are an accredited travel agency with the local authority, preferably with IATA membership; have staff who have participated in our training workshop and understand the needs of the Muslim travellers; and sell Muslim travellers only packages that comply with Crescentrating criteria for packages.”

Although Crescentrating has its own portal with booking engine, halaltrip.com, Bolduc said this till now serves individual and small group travel. Over 50 per cent of Muslims travel in family and/or multi-generational groups, which is why it needs Kuoni, he said. “Offering tour packages requires expertise in the logistics of transporting and managing large groups of people; a channel of DMCs who are experts in local sights and attractions, deep relationships with hotels and restaurants that can offer great quality at an affordable price. Kuoni is a world leader in tour packages,” Bolduc explained.

Kuoni in turn needs Crescentrating’s expertise on and commitment to halal travel to further bolster its credibility and value-add among Muslim clients. Added Kaufmann: “Part of it is helping to educate Europe’s travel trade about halal food expectations, family-friendly environments, making allowances for religious practices and gender-related nuances, and that an increasing demand exists.

“We are sourcing hotels and restaurants that can not only meet the needs of large groups of people, but are also willing to go the extra mile and offer added value. European suppliers know that if Kuoni is investing in Muslim-specific tours, we’ve done our homework and there’s a definite market here. We are confident more hotels and restaurants will join the initiative in coming months, so that we have a small number of partners in each of the cities that Asian and Muslim visitors most want to visit.”

Going the extra mile

Kuoni itself goes the extra mile by ensuring, say, itineraries are carefully planned to allow for the regular prayer times that many Muslims continue to observe while away from home. It even works with local Muslim communities to arrange joint prayer sessions or exchanges that can enhance the destination experience.

Asked what he’d wish destinations, airports and other tourism providers would do for halal travel, Bolduc said: “The availability of halal food is critical. Airports need to have halal-certified concessions. Restaurants and food suppliers in destinations would also be well-advised to offer more halal food choices in their establishments.

“Prayer facilities are also important while travelling. Governments have a role to play by raising the awareness of this untapped market to the tourism service sector and encouraging local business to cater to the unique requirements of Muslim travellers.”

In its rankings, Malaysia has consistently ranked as the most Muslim-friendly travel destination under the OIC (Organisation of Islamic Co-operation) category. Kuala Lumpur International Airport was also ranked as the top airport in 2013. For non-OIC countries, Singapore and Thailand’s Suvarnabhumi International Airport were ranked as the top destination and airport, respectively, in 2013.

“This year’s ranking of destinations should be very interesting as a number of countries are recognising the potential of the halal travel sector and making significant in-roads in developing infrastructure and services to attract Muslim travellers,” said Bolduc.

Japan, for instance, is seeking to create more user-friendly airports for Muslims, with prayer rooms, ablution facilities, halal food, etc, in the lead up to the 2020 Summer Olympics.

Meanwhile, a US$170 million resort built on Islamic principles will open in the Maldives in October. A joint venture between Maldives’ ADK Group and Turkey’s Capris Gold Group, it will offer Muslim-friendly services such as a separate beach for ladies only, certified halal buffet in all restaurants, family-friendly facilities.

Needless to say, no alcohol or pork is sold in this resort.

– See how Kuoni GTE caters to a 600 pax Muslim MICE group to Switzerland in Case Studies: Muslim incentive to Switzerland