Singapore - Asian tourism set to grow

SINGAPORE: Asian tourism is set to grow at between 4 and 6 per cent this year.

This is higher than global forecasts of 3 to 4 per cent growth according to data from the UNWTO World Tourism Barometer 2012.

Experts said the growth of low cost carriers, the middle class and increase in online bookings are just three things working for the region.

But industry players will need to collaborate to successfully ride the tourism boom.

Travel experts are singling out Indonesia as the next big market for tourism.

Its huge population base, growing middle class and diverse regions, they said, are enough to lure tourists in the years ahead.

But these visitors will likely opt for the more "localised" experience, and industry players are expected to raise the bar on the service front.

Patrick Imbardelli, president and CEO, Pan Pacific Hotels Group, said: "We're spending a lot more time training people, keeping people. We're spending a lot more (time) understanding Generation Y, Generation X and then of course, the whole retention programme. It's far more important than it ever has been."

Experts at an industry roundtable said this shift in consumer preferences is a game-changer.

For tour operators, that means creating client-specific itineraries and having local tour guides for specific locations. For hotels, that could mean designing the hotel to address various market segments.

And more travellers will be looking to the Internet to customise their trips.

Dan Lynn, CEO, AirAsiaExpedia, said: "It's a really exciting time to be in online travel in the Asia Pacific. The overall travel market is growing 6 per cent, online travel market is growing at two or three times that and our business, even faster.

"If we look ahead, a market like Japan where Expedia is already the leading outbound travel business, that business is going to continue very nicely because LCCs are moving into Japan and encouraging more travel."

Singapore sees around 30 per cent of online bookings in Asia - followed by Indonesia, the Philippines and Malaysia.

The city state gets 75 per cent of tourist arrivals from Asia.

And it's hosting a travel leader's summit in October for regional players to work together.

Neeta Lachmandas, assistant chief executive, Singapore Tourism Board, said: "I think that becomes a really important platform not only for discussing their challenges but for creating new business ideas as well."

While intra-regional tourism is looking rosy, experts said there's also money to be made from visitors in the West.

Dan Lynn, CEO, AirAsiaExpedia, said: "I think the more investment is made into the tourism infrastructure in the Asia Pacific, the easier it comes in terms of visa and releasing visa restrictions, (and) the more travel you'll see for long-haul travel.

"The price of long-haul travel is also coming down... We are still seeing very healthy growth from Europe and America. And I think in a lot of the markets in Asia, the actual prices are still attractive to the American consumer or the British consumer."

Despite the economic slowdown, Pan Pacific said the hotel business also remains resilient.

Patrick Imbardelli, president and CEO, Pan Pacific Hotels Group, said: "In Singapore, (it's) very sustainable, very resilient. When you start operating at 86-88 per cent occupancy, it's strong.

"In China, it's supply and demand. There's a lot more supply coming on and demand is not growing as fast. We're concerned about the slowdown, but overall, we're comfortable that 2012 is looking very good."

- CNA/cc

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