APAC grows on rising demand in China, India and SE Asia: AMEX GBT

February 22, 2018

According to the Global Business Travel Forecast 2018 published by American Express Global Business Travel (GBT), the outlook for international business travel is generally optimistic, with demand being driven by a steadily improving global economy and growing confidence among the business and investor communities.

Demand for business travel started to rebound last year, and is expected to grow over the next 12 months, with some notable gains expected in Europe and Asia. China and India’s high-powered economies once again lead the way. However, prices will see only marginal gains, as suppliers rapidly increase capacity to meet demand as they compete for market share.

The forecast indicates moderate price increases across air, hotel and ground transportation

Strong growing economies across much of the Asia-Pacific region and a burgeoning middle-class are causing demand for travel to surge. However, China remains a key driver of this growth and a slowdown of its economy could have a ripple effect throughout the region.

Airfares will remain relatively stable compared to 2017, as political stability and strong demand in China and India, is counterbalanced by widespread overcapacity and flatter demand in Japan and Australia. Domestic carriers in China will also have to compete with the world’s fast-developing high-speed rail network, which accounts for more than two-thirds of the world’s capacity and is expected to grow another 50 percent by 2020.

Hotel rates in the region will generally increase as growing business confidence and a thriving tourism sector drive up demand, although this will vary considerably by country. South Korea is the only nation expected to see rate decreases, largely as a result of China’s tourism ban.

Despite the recent economic progress made in many global marketplaces, an element of caution remains in some quarters. Geopolitical instability combined with moves by some governments towards more protectionist economic policies has generated an undercurrent of uncertainty in the business community.

Additional global highlights include:

Air: While strong demand is expected to drive airfare increases across all regions, overcapacity on certain routes, aggressive expansion by low-cost carriers (LCCs), and low oil prices will keep them in check. Full-service carriers are increasingly unbundling fares and adding premium economy seating options to entice consumers to better compete with LCCs.

Hotel: Hotel performance is expected to improve globally, with small to moderate rate increases driven by strengthening regional economies, despite robust investment in new hotel supply. Total costs, however, should increase even further as additional ancillary fees and stricter cancellation policies are applied by many hotels looking to bolster profitability.

Ground: After years of flat or negative growth, rental car rates should finally see increases as companies improve their fleet management while operating costs put pressure on pricing. However, competition will remain fierce. In the absence of significant rate increases, car rental companies are once again turning to ancillary services and fees to drive greater profitability.

View the full report here.

Auckland pursues new strategies

By Adelaine Ng

February 22, 2018

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Steve Armitage addressing the crowd at AIME 2018. Photo credit: Adelaine Ng

Auckland’s economic growth agency will adopt a new strategic direction in pursuing business events as the city goes through significant restructure, with a keen focus on the Asian market.

More than NZ$23 billion (US$17 million) is being invested in infrastructure, hotel developments and a new convention centre in preparation for 2021, when Auckland hosts the America’s Cup and and the Asia-Pacific Economic Cooperation (APEC) including APEC Economic Leaders Week.

Steve Armitage addressing the crowd at AIME 2018. Photo credit: Adelaine Ng

The new strategy will see Auckland Tourism, Events & Economic Development (ATEED) make a “dramatic shift” from its previous five-year visitor marketing plan towards a destination management strategy.

Defining the difference, ATEED’s general manager destination, Steve Armitage, said: “Destination marketing is the process of attracting visitors to our place, whereas destination management is the process of ensuring that when our visitors arrive, they feel welcome and have a great experience.”

In addition to the NZ$402 million New Zealand International Convention Centre (NZICC) which will open next year, Auckland’s central city will be upgraded with new laneways, public squares and parks, a redeveloped cultural quarter with a boutique hotel, and a new central rail loop or an underground train line running through. Mass transit options from the airport are also being planned along with the addition of more than 2,500 new hotel rooms near the airport over the next five years.

“2021 is an incredible opportunity to showcase Auckland as a host city for all manner of events and that obviously includes large-scale business events,” said Armitage.

“Asia is one of our priority markets and a region where we see further growth potential, particularly with the NZICC coming on stream. With the development of a soon-to-launch Destination AKL Strategy and a series of supporting action plans – including a bespoke business events plan – we will be pouring more energy and resources into this valuable sector and our key markets,” he elaborated.

Armitage added that Auckland is in a strong position to attract new business with good connectivity to Asian markets, being just one flight away from most major cities in the region.

At press time, NZICC has nine confirmed bookings worth NZ$36 million in economic impact, including the Asia Pacific Academy of Ophthalmology with 4,000 delegates and the World Veterinary Congress bringing 3,000 pax.

New AIME organiser promises a better show

By Pamela Chow

February 22, 2018

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Following backlash from exhibitors about its buyer turnout, upcoming editions of AIME will have its list of hosted buyers and exhibitors revised and expanded.

Talk2 Media & Events, the show’s newly appointed organiser by the Melbourne Convention Bureau (MCB), will take over from Reed Travel Exhibitions next year.

Pearce: plans to invest heavily in next year’s edition, changes afoot

“We’ve gone out to exhibitors and visitors to run through what they want changed and what they want out of the show,” said Matt Pearce, CEO of Talk2 Media & Events.

He shared that common feedback include the need for improved quality and quantity of hosted buyers, as well as a better mix of associations, PCOs and incentives and meetings among buyers.

Pearce revealed: “We will invest heavily and double the number of hosted buyers coming to AIME next year, and we will increase the numbers from Asia and the region. We need to make sure we have a good representation from Asia as well as Australia.”

Karen Bolinger, CEO of MCB, shared that “criticism from exhibitors” also included unhappiness stemming from the Welcome Event, where certain non-attendees would purchase a ticket and poach buyers without having to exhibit.

Melbourne Convention and Exhibition Centre’s chief executive Peter King said: “It’s important that AIME is reflective of the future, and it probably hasn’t been recently. I think next year we need to change it up and inspire the meetings industry, which is probably what we haven’t been doing for a while.

“The key elements around hosted buyers and education in particular need to be substantially invested in, and I’m sure Matt Pearce and his team have (received that very clear) message.”

Bolinger added that AIME’s upcoming editions will be more seamless, and the second day of the show will be focused on education.

“We want to make sure it’s an Asia-Pacific event, and not a Melbourne event,” she asserted.

Talk2 Media & Events will gather feedback from this year’s AIME before mapping out next year’s floor plans, Pearce told TTGmice.

Four new directors join ACTE’s volunteer leadership

By TTGmice

February 22, 2018

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Four new directors have joined the volunteer leadership of the Association of Corporate Travel Executives (ACTE) this month. They represent members in their respective regions as well as the entire ACTE membership.

Joining the board as regional board representatives are Geert Behets, head of global travel, meetings, and fleet management for UCB (Europe region); Mohammed Halawi, global travel director for Firmenich (Middle East & Africa region); Sonya Lowry, APAC travel manager for AstraZeneca (Australasia region); and Cathy Sharpe, director, strategic sourcing & global T&E management services for Illinois Tool Works (US region).

The ACTE board of directors is comprised of 14 members across the globe who represent all sectors of the business travel industry.

Beyond Asia: Radisson Blu Royal Hotel, Colorado Convention Center, and Setai Tel Aviv

By TTGmice

February 22, 2018

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The foyer leading to the meeting rooms at Radisson Blu Royal Hotel in Copenhagen. Photo credit: Joachim Wichmann

Radisson Blu Royal Hotel’s upgrading nears completion
The 259-key Radisson Blu Royal Hotel – designed by renowned Danish architect Arne Jacobson – in Copenhagen is now in its final stages of renovation and will be completed this spring.

At present the renovation of the ground floor, lobby area, restaurant and bar, the first floor meeting facilities and a number of guestrooms are complete.

Extensive refurbishment include the removal of the lobby bar and repositioning of the reception desk to create more space for guests to lounge and work; nine meeting rooms have been refreshed and named after Jacobson’s design classics such as the Egg chair; and guestrooms now feature beds upholstered with Kvadrat’s Fiord textile.

Colorado Convention Center goes 3D; expansion plans revealed
Concept3D has launched an interactive map and virtual tour platform for Colorado Convention Center.

Meeting planners from anywhere in the world can search for ideal spaces to host their event, now with the Colorado Convention Center’s 54,255m² of meeting and event space – from 63 learning rooms to the 5,000-seater Bellco theatre – mapped in highly detailed 3D renderings atop interactive software.

The Colorado Convention Center has also announced a major expansion plan to add up to 7,432m² of flexible meeting and ballroom space, more than 900m2 of pre-function and service space, and a 4,645m² rooftop terrace.

First Israel property to join LHW
The Setai brand of hotels has opened the 120-room Setai Tel Aviv, located in a 12^th-century fortress, at the entrance to the ancient city of Jaffa.

Views from the earth-tone rooms include views of the Mediterranean Sea, the historic Jaffa Clock Tower and Square, and the property’s inner courtyards.

Amenities include a spa with seven treatment rooms, a traditional Turkish Hammam, gym, restaurant and bar, rooftop infinity pool, and four function spaces that can accommodate up to 200 people.

The draw of major events

By Rosa Ocampo

February 22, 2018

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Trumpeting high-profile events is becoming part of the Philippines’s destination marketing action plan as the country strives to rebuild visitors’ confidence, currently rocked by safety and security concerns, among other things.

Take the significance of Tagum, a city in Mindanao that hosted the 6^th ASEAN Scout Jamboree late last year for 30,000-plus participants. Tagum rose up to the challenge in ensuring the safety of everyone and meeting their needs from transport and medical care to meals.

That the jamboree was successfully staged shows that Mindanao is a safe destination and is capable of hosting big international events, according to Roberto Alabado III, regional director of the Department of Tourism (DoT).

Mindanao also capitalised on the rare diplomatic gesture of Japanese prime minister Shinzo Abe when he visited the Davao home of Philippine president Rodrigo Duterte early-2017. The resulting global media coverage favoured Davao and contributed to strong arrivals from Japan, the country’s fourth largest tourism source market.

A 2016 survey of tourists from major source markets by Frost & Sullivan showed that safety and security are top concerns when visiting the Philippines, followed by traffic congestion and unclean environment.

Among local destinations, Mindanao is the most hard pressed to dispel this image exacerbated last year by the siege of Marawi (which has since ended) and the resulting declaration of martial law (still enforced).

But safety and security concerns about the Philippines were at times exaggerated to the detriment of business events. While there are some conflict areas in Mindanao, the island has far more safe and tourist-friendly areas such as Siargao, Camiguin, Davao and Bukidnon.

Teresita Landan, MICE manager, Tourism Promotions Board, said: “We have to let the market know of prominent events. They are testimonials that the Philippines is a safe destination and capable of hosting and organising events”.

She cited the 283 meetings and conference held throughout the Philippines, including a number in Mindanao, for the 2017 ASEAN Summit.

“We ably hosted them. Some were held simultaneously and in succession. There were no untoward incidents,” she pointed out.

A source requesting anonymity said the sector is learning to spotlight high-profile events in the Philippines’ favour, “unlike in the past when (these events) breezed by unknown to the industry” due to lacking government marketing and promotional support.

“Destinations have to trumpet their own accomplishments loud and clear”, he said.

Having earned a lot of publicity mileage from hosting the 2016 International Eucharistic Congress attended by over 15,000 people from around the world, Cebu is no longer shy in highlighting the events that it will host and its new tourism infrastructure. It will host Routes Asia 2019 and the first MICE Business Asia in mid-2018.

Angel Ramos Bognot, owner of Afro Asian World Events, said that as part of Cebu’s destination marketing, both the provincial government of Cebu and TPB will help market and promote MICE Business Asia.

Manila’s congested and traffic-prone image is eased somewhat by its hosting of the Asia Pacific Regional Rotaract Conference, an event to be held in the Philippines for the first time and attended by 800 people in July.

Mitch Ballesteros, CEO of Ex-Link Events which will organise the conference, said event promotion is a way of spreading good words about Manila, and the resulting publicity will further benefit the city.

The Philippines, especially Manila, is still getting big conferences, according to Team Asia chair and president Monette Iturralde-Hamlin. While it cannot attract mega events yet due to a lack of capacity, Iturralde-Hamlin said it is imperative that destination promotion persists.

She added that the private sector is doing its own destination marketing and, in her case, organising fam trips for clients. And she’s seeing results.

Alabado said the DoT is taking a step further in promoting Mindanao as a single destination with plans for cities to join forces and coordinate with each other. Since Davao is the most developed events destination in Mindanao, it can help shore up sister cities such as General Santos and Cagayn de Oro, and others in the Autonomous Region of Muslim Mindanao.

While martial law is still in effect in Mindanao, “people realise early on that it isn’t actually a martial law. Everything is back to normal, as if nothing happened”, a source said.

Landan said it is a must to showcase major international events held in the country to inspire confidence in other business event planners.

Landan noted that recent events including the United Nations World Tourism Organization’s 6^th International Conference on Tourism Statistics was a vote of confidence for the Philippines and even the Miss Universe pageant spotlights the country’s ability to host major events.

Meet in a tropical paradise

By Karen Yue

February 22, 2018

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There is so much for event planners to love about the new Anantara Kalutara Resort in the south of Sri Lanka.

First, its architecture which bears the signature Tropical Modernism style of the late Geoffrey Bawa, a celebrated architect during and beyond his time. The soaring peaked roof over the heart of the resort, held up only by tall, slender pillars which blur the lines between the lush exterior and decorative interior, is the most impressive and representative of Bawa’s genius.

The result is a number of beautiful, wide open spaces for guests to recharge and refuel that are both sheltered and breezy.

Second, its clever blend of leisure and business facilities that do not overlap and yet sit so close that business event guests can easily reach for the sparkling pool, serene spa, yoga pavilion or water sports club should they wish. Furthermore, this ensures privacy for both corporate groups, and holidaying couples and families.
And that brings us to the third reason to love the Anantara Kalutara Resort. Its standalone two-storey conference centre, located just a short walk away from the resort’s lobby and down a landscaped boardwalk along the Kalu Ganga River.

Views from the ballroom and meeting rooms are memorable, as the facilities overlook the Indian Ocean and Kalu Ganga River, with coconut palms in the foreground. For meeting groups that resist staying indoors all day long and for days on end, the conference centre is a dream come true.

Also a gem for corporate groups, event planners can choose to simply book their group for meals at the resort’s three restaurants (Olu, Acquolina and Spice Traders) or work with the resort’s F&B specialists to design a unique dining event in unique locations on the resort’s sprawling grounds.

GM named for Six Senses’ urban resorts in Singapore

By TTGmice

February 21, 2018

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Murray Aitken has been appointed general manager of Six Senses Duxton and Six Senses Maxwell.

Prior to joining Six Senses, Aitken was running his own hospitality company based in Johor Bahru, Malaysia.

The South African has spent the last two decades working in a number of countries such as Thailand, Indonesia and Puerto Rico, for hospitality brands including Rosewood, Swissotel, Regent Hotels and Resorts, Raffles Hotels and Resorts and Onyx Hospitality.

The opening of Six Senses’ two Singapore properties marks the group’s entry into city locations. Six Senses Duxton will open on April 15 with 49 guest rooms and suites, followed by Six Senses Maxwell with 120 rooms and suites three months later.

Melbourne CVB to conduct studies on APAC business events trends

By Adelaine Ng

February 20, 2018

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Business events strategists for Asia-Pacific will get their first comprehensive study of market behaviour and trends, in a project that has claimed will lead to a transformation in the industry after it becomes available later this year.

This announcement was made by Melbourne Convention Bureau’s CEO Karen Bolinger on Monday, ahead of the start of AIME (Asia-Pacific Incentives and Meetings Expo) which gets underway at the Melbourne Convention and Exhibition Centre today.

Karen Bolinger, CEO of Melbourne Convention Bureau, at the press conference. Picture credit: Adelaine Ng

“Business events have grown in scale and sophistication throughout Asia-Pacific,” said Bolinger. “And there are many anecdotal observations. But there is also minimal hard data to fully understand the challenges, opportunities, and the new business models that are likely to emerge in this growth sector”.

It was disclosed to TTGmice that the MCB will partner with PCMA Education Foundation and other researchers to launch both qualitative and quantitative studies that will investigate five key areas. These include current challenges faced by the sector, plans for future proofing businesses, issues for business events strategists, key criteria for future destination selection, and emerging business models for the region. It will also provide tools meetings professionals can use to integrate findings into their future event planning.

Bolinger said Melbourne’s success in growing its business events industry was the catalyst for their interest in creating the project. It comes off the back of securing significant bookings last year, including Spine Week 2020, the Annual Meeting of the International Continence Society 2021 and the General Assembly and Congress of the International Union of Crystallography 2023. Together they will bring more than 6,400 delegates worth A$48 million (US$38 million) in economic contribution.

Bolinger also added there’s now unprecedented support for business events in Melbourne from the Victorian state government.

“Business events are now written into two government portfolio strategies across seven industries. This is really good news for our clients because they can be confident of government support for their events,” she shared.

The MCB achieved its strongest results in financial year 2016/17 from its previous five years, earning A$321 million in economic impact.

Desaru Coast banks on corporate demand

By S Puvaneswary

February 20, 2018

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With two internationally-branded hotels, a conference centre, and an attraction coming online from end June this year in Desaru Coast in Johor, Themed Attractions Resorts & Hotels (TAR&H) has started to ramp up efforts to market the destination to meeting planners, corporate companies and outbound travel agents across Asia Pacific.

Philip Whittaker, CEO of Integrated Theme Parks & Attractions and chief commercial officer of TAR&H, said: “Desaru Coast’s close proximity to Singapore – 1.5 hours by road across the Causeway – means that Singapore is a second major target market, after the Malaysian domestic market. We see a strong potential to develop the corporate meetings market with a particular focus on small and medium enterprises across the region.”

The Ocean Course of The Els Club Desaru Coast

Compelling reasons to hold corporate events in Desaru Coast include easy accessibility from Senai and Changi Airports to Desaru Coast, and convenient access to and within Desaru Coast via regular shuttle services.

Two hotels, 275-key The Westin Desaru Coast Resort and 365-key Hard Rock Hotel Desaru Coast, the Desaru Coast Conference Centre, Desaru Coast Adventure Waterpark and retail and lifestyle village Desaru Coast Riverside will open from end June 2018. These new components will complement the existing golf courses, the 27-hole The Els Club Desaru Coast – Ocean Course and the 18-hole Valley Course.

Desaru Coast Conference Centre will be equipped with a banquet area and meeting space to host up to 1,000 delegates. The water park attraction featuring 20 different slides, and wet and dry rides will also be able to host corporate incentives, special events and teambuilding activities.

Whittaker added: “We believe the Desaru Coast development will attract meeting planners looking for a fresh, new destination particularly with its extensive integrated offerings. It will also appeal to the emerging ‘bleisure’ market, for those meeting delegates who may be compelled to extend their business meetings for a short break within Desaru Coast.”

APAC grows on rising demand in China, India and SE Asia: AMEX GBT

Auckland pursues new strategies

New AIME organiser promises a better show

Four new directors join ACTE’s volunteer leadership

Beyond Asia: Radisson Blu Royal Hotel, Colorado Convention Center, and Setai Tel Aviv

The draw of major events

Meet in a tropical paradise

GM named for Six Senses’ urban resorts in Singapore

Melbourne CVB to conduct studies on APAC business events trends

Desaru Coast banks on corporate demand

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